The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has proposed modernizing the insurance payment guarantee system under the draft Insurance Market Development Program through 2030. The Insurance Payment Guarantee Fund would be able to intervene when an insurer shows signs of financial instability, before its license is withdrawn, enabling earlier assessment of potential liabilities, funding needs and options for transferring the guaranteed insurance portfolio. The fund would gain access to portfolio information and monitor participating insurers’ financial condition. Contributions would become risk-based, with higher-risk insurers paying more. When a portfolio is transferred and the failed insurer’s assets are insufficient, the fund would cover the verified shortfall between assets and liabilities. It would also receive additional liquidation powers, including arranging an independent actuarial valuation and helping determine the insurer that assumes the liabilities in coordination with the regulator. The current system covers all compulsory insurance classes and all savings-type life insurance products, with guarantee reserves totaling KZT 39.4 billion. The proposals also envisage an Insurance Competence Development Center led by the fund to train and certify insurance professionals and develop common standards in areas including underwriting, claims handling, risk management and insurance intermediation.

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