About the First Insurance Forum dedicated to the 20th Anniversary of the Insurance Payments Guarantee Fund
The First Insurance Forum Almaty 2023 (First Insurance Forum Almaty 2023), timed to coincide with the 20th anniversary of the Insurance Payments Guarantee Fund JSC (hereinafter – the Fund), started today, September 7, in Almaty.
The Forum was attended by representatives of 11 international insurance guarantee systems (Canada, Germany, Spain, Malaysia, Taiwan, Indonesia, Kenya, Singapore, Armenia, Romania, Estonia), international experts and representatives of the insurance market.
The event was also attended by Paul Petrelli, Chairman of the International Forum of Insurance Guarantee Schemes (IFIGS), of which the Fund became a full member on September 1, 2022.
“Guarantee funds must work together and share regulatory expertise to identify problems early”, Paul Petrelli outlined in his remarks.
During the welcoming speech the Chairperson of the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market (hereinafter – the Agency) Madina Abylkassymova noted that the Forum provided a unique opportunity to exchange experience on the issues of guaranteeing systems and insurance development in general.
“Holding such an event of international level proves the relevance of insurance protection issues and increasing confidence in the insurance business” , - noted the Chairperson of the Agency.
The head of the financial regulator shared with the Forum participants some achievements of Kazakhstan insurance market.
“In 2022, the Law on Insurance Market Development was adopted, which provides for significant innovations for the sector. New socially-oriented products were introduced, and a legal framework was created for further digitalization of the insurance industry. The system of protection of insurance consumers' rights and, to a greater extent, the system of guaranteeing insurance payments have also been reformed”, - said Madina Abylkassymova.
The Law on Insurance Market Development granted the Fund the status of a financial organization, and its role in ensuring protection of the rights of clients of compulsorily liquidated insurance organizations was conceptually revised.
The law extended the Fund's guarantees to 10 classes of insurance, including all mandatory classes of insurance (8), life insurance under the state educational savings system, and retirement annuity insurance.
A mechanism for transition to a full guarantee system has been established. This provides for the Fund to make guarantee payments immediately from the moment the authorized body revokes the license of an insurance organization. The insurance portfolio of the liquidated insurance organization under the guaranteed classes of insurance will be transferred to the new insurer at the expense of the Fund's guarantee reserves.
“Successful practice of the Fund on guarantee payments and the volume of accumulated guarantee reserves allowed the Agency to improve the system of guaranteeing insurance payments of Kazakhstan taking into account the best international practices”, - emphasized Madina Abylkassymova in her speech about the Fund's activity.
Chairperson of the Agency noted that holding such a significant event, in future, may become a good annual tradition, which will strengthen international relations and give a new vector of development of Kazakhstan insurance market.
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