B.U. Sman
Candidate of Law, associate professor
K.E. Sergazina
masters student
Establishment and development of insurance activities
on the Republic of Kazakhstan
Now insurance belongs to number of the most
dynamically developing financial institutions of economy. The market relations
became the objective prerequisite of emergence of new nature of insurance
activity in the Republic of Kazakhstan: developments of various types of
insurance, formations of additional sectors, forms and methods of the organization
of insurance activity, steadily functioning specialized insurance enterprises.
Meanwhile insurance belongs to number of the oldest and steady forms of public
life tracing the roots back to far history.
Insurance represents a complex of the relations on
property protection of legitimate interests of the natural or legal entity at a
loss occurrence or other event determined by the contract of insurance by means
of the insurance payment which is carried out by insurance company at the
expense of the assets. Modern insurance in the form in which it exists in RK
now, took place a number of stages of development in which the features of the
organization and carrying out insurance were inherent. In Kazakhstan insurance
activity was widely adopted not so long ago. [2, 148-149 p.].
The first insurance companies appeared in 1990. Their
organizational structures developed from cooperatives and association of
joint-stock companies.
By 1993 when with adoption of law “About insurance”
the foundation of the insurance legislation of our state was laid, the number
of insurance companies reached 500.
The decree of the president of the Republic of
Kazakhstan from April 19th , 1994 “About organizational and legal
measures for formation and development of the insurance market” granted the
right to enter system of state regulation of insurance activity. As a part of
the Ministry of Finance the Department of insurance supervision was created. [5].
In 1994-1998 the new Law “About Insurance” was adopted
and obligatory insurance of civil responsibility of owners is entered vehicles.
The first Concept of development of the insurance market of the Republic was
issued. Authorized capital of insurance companies had to make 40 thousand of
MRP, or about 20 million tenges. The number of insurance companies during this
period fluctuated from 70 to 150. A new stage in formation of the domestic
insurance industry I became the Decree of the Head of state “About further
measures for optimization of state bodies” of June 30, 1998 according to which
functions and powers of body of insurance supervision were delegated to
National bank. 72 insurance companies worked for this moment in Kazakhstan. In
November, 2000 the Decree of the President of the Republic of Kazakhstan No.
491 accepted the State program of development of insurance for 2000-2002. In
diverse series of the normative documents accepted for the purpose of
regulation of the insurance market during the state independence it is the
first program which is specifically defining prospects of development of this
sector of economy and a state policy in this direction. “The law of the
Republic of Kazakhstan” was adopted about insurance activity on December 18,
2000 for No. 126-2. The law determines basic provisions by insurance
implementation as type of business activity, feature of creation, licensing,
regulation, termination of activity of the insurance (reinsurance) companies,
insurance brokers, an activity condition in the insurance market of other
natural and legal entities, problems of state regulation of the insurance
market and the principles of ensuring supervision of insurance activity. [4].
From 1998 to 2004 prudential standards and other
norms, obligatory to execution, and limits, the Law “About Insurance Activity”
were entered. In 2010 essential changes were made to the Law RK about insurance
activity which considerably changed its separate provisions. The Agency of the
Republic of Kazakhstan on regulation and supervision of the financial market
and the financial organizations is also created and the State program of
development of the insurance market of the Republic of Kazakhstan is accepted.
To characterize position of the insurance market of
Kazakhstan in the conditions of transition to market economy it is necessary to
tell some words about formation and development of insurance in the country,
about its emergence.
It is known that insurance appeared approximately in
the XVIII century. However origin of the national insurance market belongs to
the second half of the XIX century. And the insurance market of this period was
presented by joint-stock and mutual insurance companies, but in addition there
was also the state insurance.
After revolution of 1917 insurance appeared in all
types and forms, the state monopoly we then still belonged, to Russia. All
private insurance companies were liquidated. And in the 20th property insurance
that meant the beginning of defeat of insurance matter in the country was
cancelled.
Therefore, speaking about features of today’s
insurance market of Kazakhstan, it is necessary to understand that they are
caused by the sheer change and restoration of normal system of insurance.
The legislative base of legal regulation of the
national insurance market was put by the Law RK “About Insurance” In the same
time the Kazstrakhnadzor - Federal service of Kazakhstan on supervision of
insurance activity which was given control functions behind the domestic
insurance market was created. In 1996 the Kazstrakhnadzor was transformed to
Department of insurance supervision of the Ministry of Finance of RK.
It is possible to consider features of the modern
Kazakhstan insurance market on the example of the most cogitable personal
insurance. It is natural that features of its state (as well as other branches
of insurance) are defined by the general economic instability in the country,
the deep inflationary processes which affected all spheres of production and
services.
The main moments characterizing features of
development of personal insurance were:
• increase share of risk, short-term types of personal
insurance;
• emergence in the market of versions of the contracts
of insurance signed from one month about one year on the terms of the long-term
mixed life insurance;
• the conclusion of bulk of contracts of personal insurance
in a collective form at the expense of means of the enterprises.
All three specified moments are generally connected
with the inflation essentially depreciating all delayed insurance payments,
doing long-term insurance unprofitable neither for the insurer, nor for the
insurer.
The ban on carrying out life insurance less than one
year was in essence imposed. It resulted in need of searches by insurers of
ways of involvement of insurers to contracts of life insurance for a year and
more.
Speaking about social insurance, it is necessary to
emphasize its special importance for Kazakhstan. Unfortunately, the features
characterizing modern system of social insurance in the country are quite
deplorable.
From the funds which are traditionally relating to establishments
of social insurance at us only the following works:
• the pension fund having quite various functions
relating on bigger degree not to the sphere of social insurance;
• the social insurance fund which is also not able to
form a basis for creation in Kazakhstan of harmonious system of social
insurance;
• fund of employment which main objective has to be an
insurance on an unemployment case;
• fund of medical insurance which actually also has
very remote relation to insurance, personifying the same budgetary medicine
with a bit different sources of formation of the budget.
No in Kazakhstan this important type of social
insurance as insurance against accidents at work and occupational diseases,
which, in fact, there is in any country. No insurance fund wages, which exists
in some countries of the world and that would be very relevant in the current
environment of widespread wage arrears. Those funds that are not linked to the
system. But not all the features and characteristics of modern insurance in
Kazakhstan so sad. The special features of modern insurance in general can be
attributed the fact that now form the major state-owned commercial companies
that specialize in carrying out certain types of insurance. In this regard, has
been active in the formation of new forms of interaction between them. To
establish a voluntary association of insurance companies, which in addition to
the charter and coordination of mutual assistance provides for mutual
reinsurance. The predominant form of ownership in the insurance market of
Kazakhstan becomes joint-stock form. Of course, the problems in the formation
of a new insurance market in the country quite a lot, so you need to talk about
ways of further development of Kazakhstan with respect to insurance, to identify
the most suitable model of the insurance market. Certainly, through insurance
the state has to participate in the solution of social problems of development
of society.
Absolutely naturally also carrying out at the expense
of budget funds of obligatory personal insurance of the military personnel and
members of their families, insurance of a civil liability of owners of vehicles
is economically justified in today's conditions. It is defined by today's
economic condition of the country and follows from need of increase of social
security of the population in the conditions of the market. But obligatory
insurance should be considered as a temporary measure, a transitional stage in
the solution of social problems of society. At the same time compulsory health
insurance on the economic essence is more a question of social security of
citizens, than insurance. Defining in development of insurance have to be
voluntary types. Reduction of the sizes and decrease in their role and value
causes big concern. [1, 274 p.].
One of the main reasons of slow development of
insurance of property of legal entities is lack of legal regulation.
Development of the insurance market of Kazakhstan
demands considerable support from the state. It is necessary to resolve an
issue of the taxation of insurance activity and its state regulation.
Liquidation of Federal service of insurance supervision as independent body and
transfer of its functions to the Ministry of Finance of Kazakhstan can be
considered as a temporary measure for improvement of insurance supervision. It
is obvious that insurance supervision has to be independent federal body with
more large powers. Financing of its contents should be solved through the
off-budget fund created due to assignments from insurance premiums.
In the insurance market also the tendency to reduction
of number of insurance companies and number of agents was outlined. In nine
months 2012 in comparison with 2011 the number of insurance companies decreased
by 6%. Including the branch network was reduced more than by 15%. The number of
insurance agents decreased almost by 26%.
Now there was the extremely uneven distribution of
insurance companies on regions of Kazakhstan. In their Central district more
than 35% of total numbers are. Only in Almaty - 530 insurance companies, while
in regions Western - East - areas number of insurance companies
insignificantly.
Now financial and industrial groups, which number on
01.01.10g gain development. equaled to 46 units. Financial and industrial
groups gain development, the specific weight of production made by them grows.
Except the industrial enterprises, the group includes bank and insurance
structures. But the organization of independent insurance company for each
financial and industrial group constrains insurance development by a framework
of group.
Insurance has to develop as the independent economic
tool, constantly expanding operations. For the Kazakhstan insurance market
emergence of effective insurance companies within the separate former
ministries and departments was characteristic.
This process, certainly, positively develops on
development of the insurance market, but only in a transition period. Insurance
in the development shouldn't restrain borders of branch or the enterprises
united in financial and industrial group.
Insurance companies have to go on the way of
association between insurers: exchange of shares, mutual participation in
authorized capitals. It is the most real way of development of insurance
business in the conditions of the Kazakhstan market.
The question
of relationship of the insurance and bank markets has huge value for civilized
development of economy.
Literature:
1. Grishchenko N.B. Bases of insurance activity:
Manual. Barnaul: Publishing house Viola., 2001. – 274p.
2. Mergaliyeva R. History of development of insurance
market of the RK, 2007
3. Mergaliyeva R. Finance and Credits. 2007. 37-38 p.
4. The law of the Republic of Kazakhstan of December
18, 2000 No. 126-II “About insurance activity”.
5. The decree of the president of the Republic of
Kazakhstan from April 19th, 1994 “About organizational and legal
measures for formation and development of the insurance market”
6. Kadyrbekov T. //Market of insurance. 2007. No. 12.
Page 610
7. Svyatyna S. //Market of insurance. 2006. No. 11.
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