KYRGYZSTAN: Innovations in insurance legislation aimed at modernizing the country's insurance market and increasing its efficiency

11 June 2024 — Marina MAGNAVAL
The Service for Regulation and Supervision of the Financial Market of Kyrgyzstan has developed a draft law “On Insurance and Insurance Activities” that meets the requirements of international standards established by the International Association of Insurance Supervision (IAIS). The innovations are aimed at modernizing the country’s insurance market and increasing its efficiency, the financial portal Akchabar reports.

The draft provides for the creation of an automated information data base that will ensure the exchange of data between participants in the insurance market, which will increase transparency and availability of information, simplify interaction between insurers, policyholders and other entities.

It is also proposed to introduce an electronic insurance contract (e-policy); create a Unified State Register of Insurance Market Entities, which will ensure transparency and control over their activities.

The innovations also include introduction of new types of insurance, such as Tafakul - an Islamic type of insurance based on the principles of solidarity and mutual assistance; imputed insurance, which involves a hybrid type of insurance and combines elements of compulsory and voluntary insurance, giving legal entities and individual entrepreneurs the freedom to choose insurers, as well as annuity insurance, which is especially relevant for pensioners.