Gov’t to cancel practice of issuing insurance policies in paper form from September 1

From September 1, the practice of issuing insurance policies exclusively in paper form will be abolished, the press service of the Ministry of Justice reports.

According to the presidential decree of March 1, since September, registration of insurance contracts and issuance of insurance policies must be carried out through the Unified Automated Information System.

Failure to issue insurance policies through a unified system is grounds for invalidating them and is considered a one-time gross violation of the licensing requirements and conditions of the insurance organization.

The National Agency for Advanced Projects (NAAP) will begin to publish ratings of insurers based on the quality of insurance services provided.

The task of drawing up compulsory insurance contracts is assigned to:

•  civil liability of the employer and the carrier – to the Tax Committee and the Ministry of Transport;
•  civil liability for causing harm to the life, health and property of other persons and the environment in the event of an accident at hazardous production facilities – to the Inspectorate for Control of Mining, Geological and Industrial Safety;
•  construction risks during the construction of facilities at the expense of public funds and loans guaranteed by the government – to the Ministry of Construction and Housing and Communal Services.

In addition, NAAP will introduce compulsory insurance of real estate against man-made and natural disasters, and will also popularize insurance products such as Takafful and Green Insurance.

From October 1, 2025, the requirements for the minimum amount of differentiated authorized capital of insurance companies will be gradually increased for the next five years.

To improve competition in the insurance market, the following will be introduced:

•  international standards for calculating insurance reserves and determining the solvency of insurers;
•  improving the procedure for licensing insurance activities – including the establishment of a licensing requirement for the mandatory availability of information systems;
•  establishment of minimum insurance tariffs of a recommendatory nature under voluntary insurance contracts;
•  revision of insurance rates for compulsory civil liability insurance of vehicle owners.

In December 2023, the Senate of Oliy Majlis called for an equal competitive environment in the insurance market. Some companies violate competition law by occupying a dominant position, the senators noted.