KAZAKHSTAN: a set of amendments to be made to the insurance legislation

22 March 2021 — Marina MAGNAVAL
By the end of April 2021, the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan will introduce a set of amendments to the Mazhilis (State authority, a part of the Parliament) on regulation and development of the insurance market, writes Allinsurance.kz with reference to Kursiv.kz.

The amendments will simplify conclusion of imputed insurance contracts, which appeared in Kazakhstan in 2018. At the moment, this type of insurance is mandatory for customs brokers, lawyers, bailiffs, legal consultants, and protects consumers and clients from professional mistakes.

"Imputed insurance, on the one hand, removes the financial burden from the state and increases responsibility of business entities by regulating civil relations. On the other hand, it protects the population in case of emergencies by paying compensation to victims", explained Oleg KHANIN, Chairman of the board of Kommesk-Omir.

In addition, several amendments are related to the life insurance segment. It is planned to start subsidizing accumulative life insurance within the framework of the State Educational Funded System, in which only banks are currently participating. It is proposed to include life insurers with their accumulative insurance products into this system.

The amendments specify measures of protection of the interests of policyholders who purchase unit-linked policies. New amendments provide for the protection of insureds' assets from seizure or foreclosure of creditors of insurance companies, and establish a mechanism for return of unit-linked assets in the event of liquidation or reorganization of an insurance company. Also, the amendments provide for the introduction of joint pension annuities for spouses.

Some of the amendments relate to the formation of insurance pools in Kazakhstan, which will allow companies to better control risks and have a positive effect on the cost of insurance.

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