About measures to improve regulation of insurance services in lending
On June 30, 2025 the Head of State signed the Law of the Republic of Kazakhstan "Amendments to Certain Legislative Acts of the Republic of Kazakhstan on Development of the Financial Market, Protection of Rights of Consumers of Financial Services, Communications and Elimination of Excessive Legislative Regulation" (hereinafter the Law).
The Law provides for introduction of a limit on the size of fees for insurance agents to 10% of the amount of the insurance premium under insurance contracts related to bank loans or microloans.
Today, many banks and microfinance organizations include an insurance contract as a mandatory condition for loan issue, while simultaneously acting as insurance agents. For such services, insurance organizations pay them a fee of up to 90%. The innovation suggested by the Law will ensure protection of consumer rights and make insurance more transparent and accessible.
According to the law, banks must not impose insurance conditions, and also do not have the right to limit the borrower in the choice of an insurance organization. This is a voluntary insurance product and its terms and conditions are determined in the insurance contract as agreed by parties.
Therefore, when applying for a loan insurance, the consumer must carefully study its terms and conditions, including the size of the insurance premium and agency fee. If the borrower disagrees with the suggested terms and conditions, he has the right to contact another insurance organization of his own choice.
The amendments take effect sixty calendar days after the Law is promulgated.
External Communications Directorate