Article 9. Reinsurance activities of the Insurance Law

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1. Reinsurance activities in the territory of the Republic of Kazakhstan are subject to licensing in accordance with the procedure provided for by this Law.

2. An insurance company transfers insurance risks for reinsurance without a reinsurance license.

3. An insurance company has the right to accept insurance risks for reinsurance only if it has a reinsurance license.

4. An insurance company licensed in the general insurance industry has the right to obtain a license and carry out reinsurance activities for all classes of insurance specified in its license in the general insurance industry.

5. An insurance organization licensed in the life insurance industry has the right to obtain a license and carry out reinsurance activities for all insurance classes specified in its license in the life insurance industry, taking into account the combination of classes provided for in paragraph 3 of Article 8 of this Law.

6. A reinsurance organization that carries out reinsurance as an exclusive type of activity on the basis of a reinsurance license is entitled to carry out reinsurance for all classes of insurance in the "life insurance" and "general insurance" industries.

7. When the assignor transfers insurance risks to reinsurance, the assignor must have written confirmation from the reinsurance organization that the latter has accepted the risks for reinsurance (acceptance), indicating all the conditions of reinsurance.

8. An insurance (reinsurance) organization or the Export Credit Agency of Kazakhstan may not transfer insurance risks for reinsurance to non–resident insurance (reinsurance) organizations of the Republic of Kazakhstan included in the register of prohibited insurance (reinsurance) organizations of non–residents of the Republic of Kazakhstan.

The grounds for inclusion in the register of prohibited insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan are:

1) the fact of non-fulfillment by an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan of the requirement of an insurance (reinsurance) organization that is a resident of the Republic of Kazakhstan to make reinsurance payments, satisfied by a court decision (in case of refusal to make reinsurance payments or not making them in full);

2) the fact of non-presentation, as well as submission by a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan to the authorized body, of unreliable or incomplete information on the amount of risks, premiums and essential conditions of the reinsurance contract concluded.

The register of prohibited insurance (reinsurance) organizations-non-residents of the Republic of Kazakhstan is posted on the Internet resource of the authorized body.

The procedure for maintaining the register of prohibited insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan is determined by a regulatory legal act of the authorized body.

8-1. An insurance (reinsurance) organization has the right to transfer insurance risks to reinsurance to a reinsurance organization that is a non-resident of the Republic of Kazakhstan, directly or through mediation:

1) insurance broker;

2) a non–resident insurance broker of the Republic of Kazakhstan, provided that a non–resident insurance broker of the Republic of Kazakhstan has a subsidiary in the territory of the Republic of Kazakhstan operating as an insurance broker on the basis of a license from an authorized body;

3) a branch of a non–resident insurance broker of the Republic of Kazakhstan;

4) insurance broker – participant of the Astana International Financial Center.

An insurance (reinsurance) organization has the right to transfer insurance risks to reinsurance to a reinsurance organization that is a member of the Astana International Financial Center directly or through mediation:

1) insurance broker;

3) branch of a non–resident insurance broker of the Republic of Kazakhstan;

4) insurance broker – participant of the Astana International Financial Center.

8-2. An insurance (reinsurance) organization has the right to transfer and accept insurance risks for reinsurance to the Export Credit Agency of Kazakhstan directly or through mediation:

1) insurance broker;

3) branch of a non–resident insurance broker of the Republic of Kazakhstan;

4) insurance broker – participant of the Astana International Financial Center.

9. It was valid until 12/16/2020 in accordance with the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI.

10. If a non–resident insurance broker of the Republic of Kazakhstan participates in the process of transferring insurance risks to reinsurance through the intermediary of an insurance broker (a branch of a non–resident insurance broker of the Republic of Kazakhstan), the insurance broker (a branch of a non–resident insurance broker of the Republic of Kazakhstan) submits to the National Bank a report on the terms of placement of these risks by a non–resident insurance broker of the Republic of Kazakhstan for reinsurance to reinsurance organizations – non-residents of the Republic of Kazakhstan in accordance with the regulatory legal act of the National Bank in coordination with the authorized body.

A subsidiary of a non–resident insurance broker of the Republic of Kazakhstan operating as an insurance broker submits to the National Bank a report on reinsurance contracts concluded by an insurance (reinsurance) organization through the intermediary of this non–resident insurance broker of the Republic of Kazakhstan, in accordance with the regulatory legal act of the National Bank in coordination with the authorized body.

The transfer of insurance risks to reinsurance to a reinsurance organization participating in the Astana International Financial Center, including through the intermediary of an insurance broker participating in the Astana International Financial Center, is subject to an agreement on the exchange of information between the authorized body and a legal entity regulating financial services and related activities in the International Financial Center. "Astana".

11. 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).

12. The provisions of this Law regarding the establishment, licensing, regulation and termination of the activities of an insurance organization shall apply to the conditions for the establishment, licensing, regulation and termination of reinsurance organizations engaged in reinsurance as an exclusive type of activity.

13. An insurance (reinsurance) organization is prohibited from transferring insurance risks to reinsurance to a reinsurance organization that is a non–resident of the Republic of Kazakhstan or a participant in the Astana International Financial Center, with the participation of two or more insurance brokers who are participants in the Astana International Financial Center or insurance brokers who are non-residents of the Republic of Kazakhstan.

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

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Republic of Kazakhstan

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