About 9 years have passed since the adoption of the law on compulsory home insurance in Kyrgyzstan (adopted in 2015), but only a small part of citizens has insured their property.

The market regulator (the State Service of regulation and supervision of the financial market) has developed a few amendments to encourage owners of houses and apartments to insure their property, Vesti.kg - News of Kyrgyzstan reports.

Speaking about whether such mechanisms on the part of the regulator will work, economist Asylbek Ayupov noted: “Indeed, there are such intentions. Introduce compulsory insurance not only for houses and apartments, but also for vehicles. But in the latter case, our president postponed implementation of compulsory motor liability insurance. Real estate is not easy either. Although the law was created, there are no mechanisms for its implementation. You can force citizens, but we are still a democratic state. People make their choices based on their own understanding. In other countries there are restrictions - there are types of insurance, without which you will not receive medical care or will not even be allowed to go abroad. Still, our people’s consciousness is not yet prepared for compulsory insurance”, he emphasized.

In his opinion, the economic situation of citizens plays a significant role in the lack of insurance activity. “Still, a significant part of our population does not have the appropriate income to constantly pay insurance premiums. In addition, people doubt that in the event of force majeure they will receive reasonable compensation. (...) Whether the mechanisms proposed by the state will work or not - practice will show. There are many nuances there. But such actions with compulsory insurance are unlikely to find approval from society”, says Asylbek Ayupov.

It is noted that the state has allocated KGS 600 million (~EUR 6.24 million) for compulsory insurance in 2024. Amendments to the laws involve inclusion of an insurance policy in the mandatory list of documents for state registration of real estate ownership and other forms of real estate transactions. This will also affect vehicles. The regulator proposes to oblige owners to maintain vehicles in technically sound condition and conclude insurance contracts, the source added.