According to the Kyrgyz Financial Supervisory Commission (FSC) data, in January-April 2012 total premium written by the local insurance companies amounted to KGS 106.8 million (EUR 1.54 million) which is 13.5% more, in local currency, than in the corresponding period of the previous year. Claims paid reached KGS 11.3 million (EUR 0.16 million), which in local currency means an y-o-y increase of 7.6%.

The Kyrgyz Republic is prone to natural hazards as earthquakes, floods, hail, landslides, mudflows, drought, erosion and desertification. Over the past few decades these natural events have caused extensive damage, and will continue to impact the country unless proactive measures are not taken to mitigate and prevent according to the Disaster Risk Management Notes for Priority Countries 2009 - 2015 in Europe and Central Asia.

Thereby, Kyrgyzstan's Government initiated a draft law this year, currently under public debate, concerning the setup of a reinsurance company, "KYRGYZ-English Reinsurance Company". The new reinsurance company is meant at protecting the insurance industry by reducing technical risk and major potential of losses arising from natural disasters, noted a newsletter published by the Government. The bill stipulates that insurance companies are required to cede compulsory insurance premiums in reinsurance to KYRGYZ-English Reinsurance Company, with a net retention ratio cap of 20%.

The capital of the KYRGYZ-English Reinsurance Company will be of KGS 1 billion (EUR 16 million), co-owned by the state (10%) and ASUIA- All Seasons Underwriting Agencies Ltd. Insurance - (90%).

Access www.xprimm.com and download the January-April 2012 Kyrgyz insurance market statistics.