1 November 2019 Disclaimer

party liability insurance (MTPL) in 2019.
 
 
2. GENERAL OVERVIEW 
The CA countries are heterogeneous and differ from each other in terms 
of territory and population, as well as the diversity of natural resources. 
On the other hand, apart from geographical location and climate, cultural 
and historical characteristics, they are largely united by the similarity of 
economic models and financial systems, the level of institutional 
development and the degree of integration into the global economy. 
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Disclaimer
The Agency disclaims all liability in connection with any consequences, interpretations, conclusions, recommendations and other actions directly or 
indirectly related to the conclusions and opinions contained in the Agency’s Research Reports. 
This Report represents the opinion of Rating-Agentur Expert RA GmbH and is not a recommendation to buy, hold or sell any securities or assets, or to make 
investment decisions. 
 
 
 
 
 
Graph 2.4: Inflation, % 
Source: RAEX-Europe calculations based on data from the IMF 
 
 
 
 
 
 
 
Graph 3.11: KAZ – GWP, KZT bn 
Source: RAEX-Europe calculations based on data from the National Bank of 
Republic of Kazakhstan (NBK) 
 
 
 
Overall, the economic development in the region exceeds world growth 
levels as the region’s average real GDP is estimated at 4,6% as compared 
to a world average of 3,6% in 2018, and is expected to remain high in the 
short term (see graph 2.2). Kazakhstan and Uzbekistan, which are oil and 
gas exporters, are expected to support the region's growth next year, 
while the economies of Tajikistan and Kyrgyzstan, which are largely 
fuelled by remittances and government spending, are likely to lag behind. 
Nevertheless, the current positive dynamics are still not sufficient to 
significantly improve the standards of living in the region, the weakness 
of which constrains the active development of the insurance market. 
Institutional fragility and dominance of the state prevent the growth of 
investments and productivity, while the high dependence on external 
demand and the economies of the main trade partners, especially Russia, 
create high exposure to external shocks. Inflationary pressures are 
gradually easing except for Uzbekistan; however, the monetary policy 
efficiency remains low due to weaknesses of the banking systems, high 
level of dollarization and dependence on imports.
The insurance market of the region, amid economic growth, shows 
positive dynamics in general, but not uniform across the countries in the 
region. In the whole CA region, property and civil liability insurance 
dominate, while the life insurance sector accounts for a smaller share of 
the market, and in Tajikistan and Kyrgyzstan, the life segment is 
practically absent. Insufficient development of the insurance sector, 
shown by levels of penetration and density lagging behind the average СIS 
and European figures, reflects the low level of financial awareness of the 
population. All the countries in the region are characterized by a high 
concentration of the market with a relatively small number of players. On 
the positive side, we can highlight the supporting role of the authorities in 
Kazakhstan and Uzbekistan, where over the past few years have been 
implementing initiatives aimed at market development and improving the 
reliability of the insurance business, bringing the legislative and 
regulatory framework in line with international standards.