Insurance Forum 2023

On 7-8 September 2023, one of the key events of the insurance industry - the First Insurance Forum Almaty, timed to coincide with the 20th anniversary of the Insurance Payment Guarantee Fund JSC, was held at the InterContinental Almaty Hotel. The Forum was attended by representatives of 11 international insurance payment guarantee systems (Canada, Germany, Spain, Malaysia, Taiwan, Indonesia, Kenya, Singapore, Armenia, Romania, Estonia), international experts and representatives of the insurance market, 14 reports were presented, 4 round tables and 4 panel discussions were held.

The aim of the conference was to bring together all participants of the domestic insurance market and international experts to exchange experiences, discuss current issues and challenges, and determine the prospects and directions of insurance product development. Speakers at the event were M.E. Abylkasymova. Chairman of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market; Khadzhieva M.J. Deputy Chairman of the ARFMR; Bakhmutova E.L. Chairman of the Council of the Association of Financiers of Kazakhstan (AFK); Paul Petrelli, Chairman of the International Forum of Insurance Guarantee Schemes (IFIGS) / President Assuris, Canada; Raquel Lopez Lopez Consorcio de Compensación de Seguros, Spain; Manuela Zweimüller, Head of Implementation, International Association of Insurance Supervisors (IAIS); Mart Jesse - Head of the Association of Insurers and Motor Bureaus, Estonia; and others.

Paul Petrelli, Chairman of the International Forum of Insurance Guarantee Schemes (IFIGS), of which the IPGF became a full member on 1 September 2022, said in his speech: "Guarantee funds should cooperate and share regulatory experience in order to diagnose problems at an early stage.

Participation in the IFIGS enables international cooperation between insurance guarantee schemes and other organisations interested in protecting policyholders.

Madina Abylkasymova, Head of the Financial Supervision Department, presented the achievements of the Kazakh insurance market to the Forum participants. According to the speaker, changes in the legal sphere have also contributed to the achievement of all these very impressive indicators. The new law reformed the system of guaranteeing insurance payments. The IPGF has been given the status of a financial organisation and now guarantees payments for 10 classes of insurance, including all compulsory ones. In this way, the government hopes to increase public confidence in the insurance industry. A mechanism for moving to a full guarantee system has been put in place. This provides for the Fund to make guarantee payments immediately after an insurance company's licence has been revoked by the licensing authority.

The Forum noted that the Fund is involved in the introduction of the Europrotocol - a simplified procedure for obtaining insurance payments for car owners. The simplified procedure for settling an insurance case (Europrotocol) will allow to receive insurance payments in the event of a traffic accident
immediately using a mobile application or the Internet resource of insurance organisations, without the involvement of the police and without going to court. The Fund is the coordinator and client of the mobile service and First Credit Bureau LLP is responsible for its technical implementation.

In her speech, Maria Khadzhieva, Deputy Chairperson of the Board of the ARDF, highlighted another important project of the FGSF - the training of specialists for the insurance market. On behalf of its shareholders - insurance organisations - the Fund organises fundraising for grants and scholarships for the training of professional actuaries. In June this year, a trilateral agreement was signed between the
Agency, the Fund and Narkhoz University on the training and retraining of personnel within the framework of the "Actuary" training programme.

In her report, Elena Bakhmutova, head of the Association of Financiers of Kazakhstan (AFK), also highlighted the flourishing of the insurance industry, as well as its shortcomings.

Discussing the development of personal insurance, Yerlan Kambetbayev, CEO of Nomad Life, noted the low penetration of life insurance in the country and identified the drivers for growth in the sector. One of these is the further modernisation of the pension system with the participation of insurance
companies.

During the panel discussions, the issue of further expansion of imputed insurance forms was raised. One of the global trends is the creation of a catastrophic risk insurance system in the country. This will make it possible to minimise the consequences of natural disasters and compensate for financial losses suffered by the population and businesses.

International experts shared their experience of online settlement, digitalisation in their countries and foreign experience in the development of personal insurance.

The First Insurance Forum Almaty was organised by the Insurance Payment Guarantee Fund in
cooperation with ARRF, IPGF shareholders, AFK, ASK.