Insurance

While insurance in Mongolia remains in its nascent stages, important ongoing reforms may yet drive penetration, build local underwriting capacity and develop the first pool of domestic non-bank institutional investors. While the aggregate sums involved remain modest, buoyant growth bodes well for the medium term. The market is dominated by eight firms, which together account for 89% of non-life premiums. Three underwriters alone account for 54% of the market. New entrants are spurring competition with established players, driving innovation in product development and distribution channels. New rules for private insurers will have to be matched by wide-ranging reform of the states social insurance system. Promoting social acceptance of insurance will be crucial for long-term growth, with underwriters still to overcome distrust of private cover. This chapter contains an interview with T. Batzul, CEO, Mongol Daatgal.