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ARDFM told about action plans for this year

The Chairman of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDFM) Madina Abylkassymova held a meeting with insurance organizations discussing the results of the supervisory policy in 2021 and the main priorities of the supervisory policy of the insurance sector for 2022. The representatives of the National Bank and Financial Institutions’ Association of Kazakhstan also attended the meeting, the organization's press service reports.
ARDFM told about action plans for this year

In March 2021, for the first time, the document “Main Priorities of the Supervisory Policy of the Insurance Sector” was developed and published, within the framework of which risk-based supervision was carried out. The Agency assessed the insurance companies using the SRES system and determined the level of supervisory attention. Based on results of insurance organizations’ activities in 2021, 4 insurance organizations were placed under extreme supervision, 6 – under intensive supervision, 6 – under detailed supervision, 3 - under observation, and 9 – under standard supervision.

In 2021, for the first time the insurance organizations carried out an independent risk assessment guided by a methodology developed on the basis of the international regulatory system Insurance Regulatory Information System (IRIS).

The work on assessment of adequacy of insurance reserves in the socially significant mandatory class of employee accident insurance (CAI) was carried out in 2021. At this stage the information received from insurance organizations, government agencies, databases and other sources was analyzed for completeness and reliability of the statistics necessary for the formation of insurance reserves.

The work with each insurance company aimed at assessing the adequacy of insurance reserves in the CAI class, will be carried out in the 1st HY 2022.

In order to further develop risk-based supervision, ARDFM will continue to improve legal requirements and develop new regulatory initiatives aimed at improving both internal and external systems of risk assessment and management in insurance companies in 2022. For consumer right protection, an internal system of risk-based supervision (SRES) will be finalized, namely, a quantitative risk assessment (EWS) will be established with reference to justified complaints from consumers of financial services against insurance organizations based on the Russian Central Bank experience.

The preparation for implementation of elements of the International Solvency Standard for Insurance Organizations Solvency II and International Financial Reporting Standard No. 17 “Insurance Contracts” will be an important novelty in 2022.

The work in insurance services digitalization in accordance with the Concept for Development of Financial Technologies and Innovations for 2020-2025 will also continue in 2022.

The meeting participants discussed the approaches to prudential regulation of insurance organizations and issues of reporting optimization, as well as insurance intermediaries’ activities.

Photos are from open sources.

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