According to the Kyrgyz Financial Supervisory Commission's data, in January-September 2014, the total premiums written by the local insurance companies amounted to KGS 880.98 million, while claims paid totaled KGS 111.31 million.

In Kyrgyzstan, 17 insurance companies are licensed. "In reality, only six of these companies are active. There were captive insurance companies that belong to banks or holdings, especially insuring their own lines of business or covering risks of property, life and health of borrowers. All companies are commercial organizations, in Kyrgyzstan there is no the state-owned insurance company," Enver HAVAZOV, Deputy General Director, NSK, declared for the local news portal SPUTNIK.

In Kyrgyzstan there is no compulsory line of insurance for individuals, but there are some for legal entities; however, this insurance system is not working. The main reason for the lack of efficiency of compulsory insurance for a legal person is that by law it doesn't provide the sanctions for non-performance.

Local insurers are divided into two groups: managerial insurance companies and poorly developed agency organizations. "This is due to the fact that the first type of companies does not need to keep large staff because for the most part we are engaged in the insurance of large risks - plants, large businesses, branches and representative offices of international organizations. As result large customers, large legal entities provide great performance. The insurance companies represented by agencies, of which activities are carried out through the work of a large number of agents, without the introduction of compulsory insurance for individuals in our country have difficulty functioning properly. However, we are working in this direction," Enver HAVAZOV explained.

Of the former Soviet republics Kyrgyzstan is the only country in which there is no MTPL insurance. Each year the number of road accidents is increasing and insurers are faced with problems when people involved in accidents are not compensated for damages.

"In this regard the courts cannot help, because they may be required to pay KGS 200 per month while damages amount to a few thousand dollars. In the case of MTPL insurance damages can be compensated by insurance companies. If we get to introduce compulsory insurance, it will be a first step forward in the development of the entire insurance market. An increase in the quantity and quality of insurance companies and their reserves can have a positive impact on the country's economy," added Enver HAVAZOV.