Article 43. Competence of the authorized body of the Insurance Law

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Authorized body:

1) pursues a state policy to ensure the functioning of the insurance system in the Republic of Kazakhstan and the formation of the infrastructure of the national insurance market, protecting the rights and legitimate interests of policyholders and other participants in the insurance market;

2) defines the principles and methods of regulating the insurance market, the procedure for organizing control and supervision of insurance activities;

3) issues permits for the establishment of insurance (reinsurance) organizations, the opening of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan;

4) determines, taking into account the requirements of this Law, the procedure for issuing and revoking consent to acquire the status of a major participant in an insurance (reinsurance) organization or insurance holding company, issues permission to acquire the status of a major participant in an insurance (reinsurance) organization or insurance holding company, establishes the shares of direct and (or) indirect ownership of a major participant by voting (minus preferred) shares of an insurance (reinsurance) organization or insurance holding company;

5) agrees to the voluntary reorganization and liquidation of an insurance (reinsurance) organization, the voluntary termination of the activities of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan;

6) grants permission for the establishment of a subsidiary of an insurance (reinsurance) organization, an insurance holding company for significant participation in the authorized capital of legal entities;

7) determines the procedure for forming a risk management and internal control system for insurance (reinsurance) organizations and insurance groups;

8) determines, taking into account the requirements of this Law, the procedure for issuing and issuing licenses for the right to carry out insurance (reinsurance) activities, insurance broker activities, actuarial activities in the insurance market;

9) determines the procedure for transferring the insurance portfolio;

10) establishes prudential standards and other mandatory norms and limits for an insurance (reinsurance) organization and an insurance group, including minimum amounts of authorized capital, guarantee fund, and solvency margin, and ensures control over their compliance;

11) establishes requirements for the minimum size of the authorized and equity capital of an insurance broker, ensures control over their compliance;

12) determines the conditions and procedure for the insurance broker's activities;

12-1) determines the procedure for electing and carrying out the activities of the insurance Ombudsman;

13) monitors the activities of liquidation commissions of insurance (reinsurance) organizations being liquidated, which forcibly terminate the activities of branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan;

14) in case of suspension of the license on the grounds provided for in subparagraph 2) paragraph 1 of Article 54 of this Law has the right to limit the increase in expenses, including administrative expenses, of an insurance (reinsurance) organization;

15) gives consent to the appointment (election) of senior officials of insurance (reinsurance) organizations, insurance holdings and insurance brokers;

16) carries out the analysis, assessment and control of the financial stability and solvency of an insurance (reinsurance) organization;

17) establishes the procedure for accounting by an insurance (reinsurance) organization of insurance contracts (insurance policies) and reinsurance;

18) imposes requirements on methods of assessment and principles of calculation of insurance tariffs by classes (types) of insurance of insurance (reinsurance) organizations;

18-1) determines the procedure for calculating correction coefficients to coefficients for the territory of vehicle registration for calculating the insurance premium for compulsory insurance of civil liability of vehicle owners;

18-2) defines the procedure for calculating and applying the coefficient according to the bonus-malus system for calculating the insurance premium for compulsory civil liability insurance of vehicle owners;

18-3) determines the procedure, conditions and terms of the simplified procedure for the settlement of insured events, the maximum amount of the insured sum for each individual insured event, as well as the form of the declaration on the simplified procedure for the settlement of the insured event and the requirements for the preparation of documents and information attached thereto.;

19) defines the procedure for calculating the coefficients characterizing the loss ratio (loss ratio, cost ratio, combined coefficient) insurance (reinsurance) organizations;

20) establishes the procedure for calculating the redemption amount;

20-1) determines the procedure and conditions for the provision of services by a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan engaged in cumulative insurance activities for the issuance of loans by a non-resident insurance organization of the Republic of Kazakhstan to its policyholders;

21) maintains a register of insurance (reinsurance) organizations, insurance brokers, branches and representative offices of insurance (reinsurance) organizations and insurance brokers, actuaries; IZPI's note! Subparagraph 21) is provided to be deleted by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

21-1) maintains a register of valid consents to the appointment (election) of senior officials of insurance (reinsurance) organizations, insurance brokers, branches of insurance (reinsurance) organizations that are non–residents of the Republic of Kazakhstan, branches of insurance brokers that are non–residents of the Republic of Kazakhstan, the Insurance Benefit Guarantee Fund Joint Stock Company; IZPI's note! Subparagraph 21-1) is provided to be deleted by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

22) excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020);

23) establishes requirements for the organization's activities related to the creation and maintenance of a database, including requirements for:

the information process;

the formation of a security system and the establishment of minimum requirements for electronic equipment;

database security;

premises;

24) establishes requirements for software and hardware and Internet resources of an insurance (reinsurance) organization that ensure the conclusion of insurance contracts and the exchange of electronic information resources between the policyholder and the insurer;

25) establishes requirements for the organization of safe work that ensures the safety and protection of information from unauthorized access to data stored in an insurance (reinsurance) organization, as well as the cybersecurity of an insurance (reinsurance) organization.;

26) defines the procedure and specifics of reinsurance activities, as well as the insurance (reinsurance) pool;

27) adopt mandatory regulatory legal acts in the field of insurance for insurance (reinsurance) organizations and other participants in the insurance market in accordance with the goals and objectives provided for in Articles 1-1 and paragraph 1 of Article 41 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is defined in the regulation on the authorized body.;

28) conducts inspections of insurance entities, insurance brokers, separate divisions of insurance entities and insurance brokers, organizations that guarantee insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, as well as insurance holdings, insurance groups and major participants in insurance (reinsurance) organizations;

29) monitors compliance by insurance (reinsurance) organizations and insurance brokers with the requirements stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime and the financing of terrorism;

30) imposes sanctions on professional participants in the insurance market, an insurance holding company, organizations that are part of an insurance group, and large participants in an insurance (reinsurance) organization;

31) decides on the suspension of licenses and revocation of licenses issued to professional participants in the insurance market;

32) approves the decision of the interim administration on the transfer of the insurance portfolio in case of revocation of the license of the insurance (reinsurance) organization;

33) decides to apply to the court with a claim for termination of the activity of an insurance (reinsurance) organization on the grounds provided for by the laws of the Republic of Kazakhstan;

34) has the right to receive information about the activities of an insurance (reinsurance) organization, the legal status and financial condition of its founders, as well as persons who are subsidiaries or separate divisions in relation to the insurance (reinsurance) organization, and its founders;

35) has the right to receive from professional participants of the insurance market and their associations, insurance agents the necessary information to carry out their control and supervisory functions in accordance with this Law;

36) has the right to receive from state bodies and organizations information necessary for the exercise of their control and supervisory functions, including information constituting official or commercial secrets.;

37) establishes requirements for the content and procedure for registration of insurance policies;

38) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019);

39) defines the procedure for the exchange of electronic information resources between the organization for the formation and maintenance of the database and the insurer, the insurer and the policyholder (insured, beneficiary);

40) has the right to apply mandatory supervisory response measures to professional participants in the insurance market, an insurance holding company, an organization that guarantees insurance payments, their senior employees, organizations that are part of an insurance group, large participants in an insurance (reinsurance) organization, persons who have the characteristics of a large participant in an insurance (reinsurance) organization, or insurance holding company;

41) Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

42) carries out cooperation and necessary exchange of information with other authorized bodies of supervision of subjects of the financial market of the Republic of Kazakhstan;

43) represents the interests of the Republic of Kazakhstan in relations with insurance supervisory authorities of other states, as well as international organizations on the regulation of the insurance market and supervision of insurance activities;

44) determines the procedure for posting information on the Internet resource of an insurance organization, insurance broker, organization for the formation and maintenance of a database and an organization that guarantees insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations, insurance ombudsman;

45) establishes the terms of appointment and the procedure for actuarial calculations by independent actuaries;

46) has the right to request an adjustment of financial and other statements by an insurance (reinsurance) organization or insurance broker in the event that they submit unreliable (incomplete) statements.;

46-1) defines the minimum requirements for standard imputed insurance contracts;

46-2) approves the methodology for calculating the amount of mandatory contributions, the procedure and deadlines for payment of mandatory contributions by insurance organizations to the office of the Insurance Ombudsman;

46-3) elects to the position of Insurance Ombudsman from among at least three candidates recommended for election by the Council of Representatives of the Insurance Ombudsman who meet the requirements established by Article 88 of this Law.;

46-4) prematurely terminates the powers of the insurance Ombudsman in case of systematic (three or more times in the last twelve months) violations in its activities of the requirements of the legislation of the Republic of Kazakhstan on insurance and insurance activities and (or) internal rules of the Insurance Ombudsman;

47) performs other functions stipulated by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated December 18, 2000 No. 126.

President

Republic of Kazakhstan

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