Kyrgyzstan Insurance Industry – Governance, Risk and Compliance
All the vital news, analysis, and commentary curated by our industry experts.
The FSA (Financial Service Authority) governs the insurance and reinsurance activities in Kyrgyzstan. Its main objective is to strengthen the country’s insurance. The main functions and objectives of the FSA are to receive established reports on insurance activity and financial information from insurers, also to initiate the liquidation of insurance organizations in the case of insolvency according to the law on bankruptcy, and to check insurers’ compliance with Kyrgyz insurance law, as well as the authenticity of their submitted reports and to supervise the activity of insurance organizations, in accordance with established Kyrgyz procedure.
What are the different types of licenses issued by the regulatory authority to carry out insurance activities?
The different types of licenses issued by the regulatory authority to carry out insurance activities are:
- Life insurance license
- Non-life insurance license
- Reinsurance license
- License for intermediaries, including agents and brokers
Reinsurance companies sell policies to insurers to protect them from the risk of unexpected financial losses. Reinsurers are required to obtain the required license from the FSA for operations in the country. Insurers cannot operate as reinsurers under the same license. Whereas intermediaries are the retail side of the industry, positioned between the insurer and the insured. An intermediary market solicits or negotiates insurance contracts with customers on behalf of insurance companies in return for compensation. Intermediaries also counsel customers and provide advice on various insurance products. In the Kyrgyzstan insurance industry, agents and brokers act as intermediaries between the insurer and insured.
Kyrgyzstan insurance industry, by license type
For more insights, download a free report sample
What are the key pieces of legislation governing the industry?
The Insurance Law 1998 stipulates the guidelines for the regulation of the insurance industry in Kyrgyzstan. The law governs the activities of insurance and reinsurance companies, as well as insurance intermediaries. There are a few aspects of insurance operation administrated by the law including licensing of insurance companies, reinsurance companies, and intermediaries, maintenance of capital, solvency and reserve requirements by companies, and suspension of licenses and appointment of a management committee to investigate unlawful insurer activities and reporting standards for insurers and reinsurers.
In addition, the key laws governing the insurance industry include the following: Insurance Law 1998, Civil code of Kyrgyzstan 1996, Law on motor third-party liability insurance 2019, Law on civil liability insurance for the carriers of dangerous goods, Law on compulsory insurance of civil liability of organizations operating hazardous production facilities, The law on compulsory insurance of civil liability of the employer for damage to the life and health of employees, Law on the insurance of civil liability of the carrier to passengers, Law on compulsory insurance of premises from fire and natural disasters, Law on compulsory life and health insurance for servicemen and military persons are some of the important legislation controlling the insurance business.
What are the requirements and procedures to establish an insurance entity in Kyrgyzstan?
Reinsurers: An insurance company must register its operations with the FSA to start insurance operations in Kyrgyzstan. Insurance Law 1998 outlines the guidelines for establishing insurance and reinsurance companies in the country. However, the regulation does not require reinsurers to submit the business plan, rating tariffs, or policy wordings.
Foreign insurers: The Law only permits foreign insurance companies to operate in Kyrgyzstan after obtaining authorization from the FSA and submitting the following documents in addition to the documents for domestic insurers that including the resolution of the corresponding foreign insurance company regarding its participation in the organization’s formation, legal written confirmation that the authorized body of the foreign insurance company (the founder) has a valid license for the specific type of insurance activity and officially published balances for three previous years.
What are the applicable penalties on individuals and entities contravening provisions of insurance legislation?
The Kyrgyzstan legal system is influenced by the Roman-German legal system. The country’s legal system was shaped and developed within the framework of Soviet state law, and after its independence, the country’s legal system adopted features of both the Russian and French legal systems. Legislation is the basic source of rule of law in Kyrgyzstan.
The FSA may revoke a license in the following cases: If the insurance organization fails to fulfill obligations on payment of insurance indemnification to the insured, if the insurance organization repeatedly violates the laws which regulate the Kyrgyz insurance industry, if the insurance organization does not take measures to improve its financial situation, if any prohibited activity is carried out and if, within 12 months after obtaining the license, the organization fails to start its activity on this type of insurance.
What are the statutory investment compliance regulations in the Kyrgyzstan insurance industry?
According to the insurance Law 1998, insurers in compliance with the principles of reliability, returnability, profitability, liquidity, and diversification shall invest the insurance reserves. To the extent of limitations established by the FSA, the investment of insurance resources may be made outside of the territory of Kyrgyzstan.
Market report scope
Key license types
|Life insurance license, non-life insurance license, reinsurance license, license for intermediaries, including agents and brokers.|
- The report covers details of the insurance regulatory framework in Kyrgyzstan.
- The report contains details of the rules and regulations governing insurance products and entities.
- The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
- The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
- The report provides details of taxation imposed on insurance products and companies.
Reasons to Buy
- Gain insights into the insurance regulatory framework in Kyrgyzstan.
- Track the latest regulatory changes and expected changes impacting the Kyrgyz insurance industry.
- Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
- Understand key regulations and market practices pertaining to various types of insurance products.
Table of Contents
Table of Contents
Supervision and Control
Non-Admitted Insurance Regulations
Company Registration and Operation
Foreign Direct Investment / Ownership
Minimum Capital Requirements
Statutory Return Requirements
Tax on Insurance Premium
Corporate Income Tax
Corporate Capital Gains Tax
Value Added Tax
Frequently asked questions
What are the key license types in the Kyrgyzstan insurance industry?
The different types of insurance licenses issued in the insurance industry in Kyrgyzstan are life insurance license, non-life insurance license, reinsurance license, license for intermediaries, including agents and brokers.
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.
Business Intelligence & Marketing Manager, SAL Heavy Lift
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
Market Analyst & Management, Liebherr-Werk
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Head of Key Accounts, Saab AB
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Marketing Intelligence Manager, Portugal Foods
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.
Head of Customer Insight and Research, Standard Chartered
Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.
I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.
I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.
Head of Consumer Sensory Insights, Givaudan
“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.
Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”
Senior Account Manager, TSYS
GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise. The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.
I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.
One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.