Investor’s guide

INSURANCE

Legislation

Activities of insurance companies are regulated by the following legal acts:

  • Civil Code and the Laws of the Kyrgyz Republic;
  • Law “On Organization of Insurance in the Kyrgyz Republic” [1];
  • Law “On Mandatory Insurance of Employer Civil Liability for Death or Injury of Employee While on Duty”[2];
  • Law “On Mandatory Insurance of Carrier Civil Liability to Passengers”[3];
  • Law “On Mandatory Insurance of Civil Liability of Carriers of Hazardous Cargoes”[4];
  • Law “On Mandatory Insurance of Civil Liability of Entities Operating Hazardous; Facilities”[5];
  • Law “On Peculiarities of Crop Insurance”[6];
  • Law “On Mandatory Insurance of Civil Liability of Vehicle Owners”[7];
  • Law “On Mandatory Insurance of Residential Premises against Fire and Natural Disasters”[8] and other normative legal acts”.

Establishment and Licensing

Insurance companies may be founded as open or closed joint stock companies with the minimum charter capital being:[9]

  • at least 30 mln. KGS to engage in voluntary insurance and/or re-insurance services, except universal life insurance;
  • at least 150 mln. KGS  to engage in voluntary or mandatory insurance or  reinsurance services including universal life insurance;
  • at least 300 mln. KGS for operating insurance companies engaged solely in re-insurance;
  • at least 1 mln. KGS for insurance or reinsurance broker activities.

Insurance activity is subject to licensing, and a separate license is required for each type of insurance activity. A license is valid for an unlimited period, unless otherwise provided therein. Insurance (premium or coverage) may be paid in either national or foreign currency. In case the insurance premium is paid in foreign currency, the insurance coverage may be paid in KGS if so agreed by the parties.

An intermediary activity of an insurance agent or broker involving the execution of insurance contracts on behalf of foreign insurance companies in the Kyrgyz Republic is not allowed. The activity of foreign insurance brokers in the Kyrgyz Republic is allowed after the recognition of the respective license issued by the competent authorities of the foreign states in the way provided by the licensing laws of the Kyrgyz Republic.

The rate of insurance premiums received is growing from year to year, thus triggering the growth of the rate of insurers entering into insurance contracts with insurance companies. Before 2005, it was mainly property and life insurance, which predominated; voluntary liability insurance evolved later, with the introduction in 2010 of mandatory civil liability insurance for: employers against liability for death or injury of employees while on duty; carriers of passengers; carriers of hazardous cargoes; entities operating hazardous facilities. In 2015, two more types of mandatory civil liability insurance were introduced: for auto-owners and homeowners against fire and natural disasters. 

Most of insurance premiums account for property, general liability, mandatory civil liability and accumulative insurance.

[text is provided by Kalikova & Associates]


[1] The Law of Kyrgyz Republic “On Organization of Insurance in Kyrgyz Republic” dated July 23, 1998 (with the latest amendments as of July 15, 2009).

[2] The Law of Kyrgyz Republic “On Mandatory Insurance of Civil Liability of Employer for Death or Injury of Employee While on Duty” dated August 5, 2008.

[3] The Law of Kyrgyz Republic “On Mandatory Insurance of Civil Liability of Carrier to Passengers” dated August 4, 2008.

[4] The Law of Kyrgyz Republic “On Mandatory Insurance of Civil Liability of Carrier of Hazardous Cargoes” dated August 4, 2008.

[5] The Law of Kyrgyz Republic “On Mandatory Insurance of Civil Liability of Entities Operating Hazardous Facilities” dated August 15, 2008.

[6] The Law of Kyrgyz Republic “On Peculiarities of Crop Insurance” dated January 26, 2009 No. 31.

[7] The Law of Kyrgyz Republic “On Mandatory Insurance of Civil Liability of Vehicle Owners” dated July 24, 2015.

[8] The Law of Kyrgyz Republic “On Mandatory Insurance of Residential Premises against Fire and Natural Disasters” dated July 31, 2015.

[9] Government Resolution No. 300 dated November 25, 2010.