Article 52-1. Risk Management and Internal Control System of the Insurance Law

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 1. Insurance (reinsurance) organizations form a risk management and internal control system, which should include:

1) the powers and functional responsibilities for risk management and internal control of the board of directors, the management board, and divisions of an insurance (reinsurance) organization (the relevant governing body of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan), and their responsibilities;

2) internal risk management and internal control policies and procedures;

3) limits on the permissible amount of risks individually by type of activity of an insurance (reinsurance) organization;

4) internal procedures for reporting on risk management and internal control to the bodies of an insurance (reinsurance) organization;

5) internal criteria for evaluating the effectiveness of the risk management system.

IZPI's note! The first part of paragraph 1 is provided to be supplemented by subparagraph 6) in accordance with 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).

6) internal procedures for the development, approval and implementation of financial products.

The procedure for forming a risk management and internal control system is established by a regulatory legal act of the authorized body.

The specifics of the formation of a risk management system by insurance organizations licensed to manage an investment portfolio in the securities market are determined by the regulatory legal act of the authorized body provided for in this paragraph.

1-1. Insurance organizations engaged in investment asset management activities form a risk management and internal control system in accordance with the procedure established by a regulatory legal act of the authorized body.

2. The insurance group must have a risk management and internal control system that meets the requirements established by the regulatory legal act of the authorized body.

The parent organization of the insurance group ensures compliance with the requirements for the risk management and internal control system on a consolidated basis.

The parent organization of the insurance group is responsible for ensuring that the insurance group members comply with the requirements of the risk management and internal control system.

2-1. The insurance holding company ensures the availability of risk management and internal control systems, including in relation to risks associated with the activities of a subsidiary or organizations in which the insurance holding company has a significant involvement.

The requirements of the first part of this paragraph apply to persons wishing to acquire the status of an insurance holding company.

3. The authorized body evaluates the compliance of the risk management and internal control system with the requirements established by this article.

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

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Republic of Kazakhstan

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