ASTANA – Online insurance will be introduced to increase accessibility not only in large cities, but also in regions, said National Bank Chairman Daniyar Akishev at a Sept. 26 government meeting. The draft law “On Amendments and Additions to Some Legislative Acts on Insurance and Insurance Activities” was presented to the government.
Daniyar Akishev. Photo credit: primeminister.kz
The level of insurance services and economic significance of the insurance market will remain, said Akishev. The amount of insurance premiums has not exceeded one percent of the GDP for the last ten years.
The new law aims to improve the quality of insurance services and reduce its cost for citizens and businesses.
“The law introduces online insurance. The world’s share of online buyers accounts for 40 percent. People will have the opportunity to enter into insurance contracts online as a result of online insurance introduction. Previously, the legal framework did not allow the project to be implemented at full capacity,” he added.
Residents will be able to complete insurance contracts online without visiting an office or meeting an agent. Insurance coverage procedures will be simplified to speed up all business processes.
“A single database on insurance contracts is a key element of online insurance. The database will be a single accounting organisation and a repository for compulsory insurance policies,” noted Akishev.
The insurance sector will be the first segment to implement the World Trade Organisation’s (WTO) requirements for market access to foreign companies’ branches.
“The national insurance sector does not have much time to provide a sustainable development model that can withstand competition. Therefore, changing the environment and the challenges facing the insurance market require further improvement of the legislation,” he said.
The law also touches upon certain issues related to Kazakh travellers. They can currently obtain insurance coverage only after returning from their trips and based on a valid court decision. No list of situations has been complied when tourists have the right to receive insurance coverage and “its amount remains inadequate” to protect their interests, he added.
“The law introduces the transition to compulsory property and casualty insurance for persons going abroad to protect Kazakh tourists. The travel agency will provide this insurance as part of the compulsory programmes, which will include the basic social protection coverage related to environmental and social risks. Due to coverage, the cost of insurance will be about 340 tenge (US$1) per day. Insurance coverage varies from 3.4-17 million tenge (US$10,000-$50,000),” said Akishev.
