Insurance

The insurance sector, like that of many emerging markets, is small, undersubscribed, poorly staffed and confusingly regulated. However, Mongolia’s growth story has driven annual premium growth of around 20%, and new initiatives should help the industry grow further. Motor insurance, for example, became mandatory on January 1, 2012. Eight firms dominate the sector, with legacy provider Mongolia Daatgal commanding a 30% share, and foreign-owned companies beginning to appear on the scene. One unique product being offered now is livestock insurance, which seeks to mitigate the losses frequently suffered by rural farmers during intensely cold winters, or dzuds. This chapter features an interview with S. Ganbold, Insurance Market Department Director, Financial Regulatory Committee (FRC).