Kazakh citizens spend 15.6 thousand tenge on insurance within a year

16 November, 2018, 13:03 376
Kazakh citizens spend 15.6 thousand tenge on insurance within a year

It is 0.5% of GDP per capita (2.9 million tenge). 

 

The demand for insurance products in Kazakhstan remains at a low level, the studies undertook show, BNews.kz reports referring to finprom.kz.  

According to analytics, the financial sector of Kazakhstan continues declining. The volume of loan portfolios of the country's banks has made up 13.2 trillion tenge over the last year, which is 24.8% of GDP (in 2014 - 35.8%). 

At the same time, the demand for insurance products remains low. The average insurance in Kazakhstan amounts to 15.6 thousand tenge a year, 0.5% of GDP per capita (2.9 million tenge). In 2014 the average amount of insurance premiums per person was 0.7% of GDP per capita. 

If in pre-crisis 2005-2006 Kazakhstan's economy grew by 9.7% or 10.7% a year (China's GDP - by 11.4% and 12.7%), assets of the banking sector of GDP was 89.1% in 2007, then 10 years ago the proportion amounted to 45.6% (assets of the second-tier banks in 2017 - 92.6%). And the cumulative share of banks' loans of GDP - 25.6%.  

During this situation, the banks should focus on retail lending and funding. Loans provided to individuals by the end of September 2018 has been 5.1 trillion tenge, or 40.2% of all bank loans to Kazakhstan's economy (in 2014 - 33.2%). The resource base shifted to retail deposits: deposits of individuals and legal entities as of the end of September were 8.5 and 8.2 trillion tenge respectively. 

The Global Competitiveness Rankings of the World Economic Forum for 2017-2018, Kazakhstan ranks 114th in terms of the 'financial market development' pillar. The worst results are observed in such pilar as 'Securities Market Regulation' (117th), 'Banks' sustainability' (114th) and 'Financing through the local stock market' (108th).