The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has developed a new supervisory model for assessing insurance companies' risks in line with Solvency II and International Financial Reporting Standard 17. The model shifts supervision away from the previous Solvency I and International Financial Reporting Standard 4 framework, which relied on fixed prudential ratios and standardized coefficients, toward a risk-based assessment of each insurer's actual risk profile, the sustainability of its business model, and the quality of its risk management system. The new Supervisory Risk Evaluation System, or SRES, combines quantitative and qualitative analysis across four blocks: business model analysis, capital risks, liquidity risks and corporate governance. It is based on 37 quantitative indicators and 834 qualitative questions, and includes interviews with senior management and heads of business units as a core element of the review. The qualitative component assesses the development of risk management systems, the quality of business processes and decision-making, the level of digitalization and the maturity of corporate governance. A 2025 pilot involving a group of insurers tested the methodology across different business models and, according to the agency, confirmed the approach's effectiveness and relevance in current market conditions. A detailed report has been prepared setting out the implementation results, development areas for insurers and the resulting supervisory expectations. Supervisory assessments will be conducted annually from 2026. From 2027, the framework is intended to support supervisory measures and decisions, including capital add-ons linked to companies' risk profiles and the quality of their internal control systems.

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