The Ministry of Economy and Commerce has presented for public discussion a draft resolution that proposes the designation of the open joint-stock company "State Insurance Organization" (GSO) as the national operator for reinsurance. The main goal of this project is to create national reinsurance capacity and strengthen the financial stability of the insurance sector, which will also help protect the property interests of policyholders and beneficiaries. This document is part of the implementation of the decree of the President of the Kyrgyz Republic dated March 20, 2024, No. 79, concerning the development of the country's insurance market.
Current Situation in the Insurance Market
As of today, there are 16 insurance companies operating in Kyrgyzstan. From 2021 to 2024, the total volume of collected insurance premiums amounted to approximately 11.66 billion soms. During this period, the loss ratio reached 20.5%, which corresponds to 2.39 billion soms.
At the same time, a significant portion of risks is transferred to foreign reinsurers. Over four years, 3.49 billion soms were transferred, which accounts for 29.9% of the total premium volume.
In 2024, the volume of premiums transferred for reinsurance reached 1.5 billion soms, of which:
- within the country — 221.2 million soms (14.8%);
- abroad — 1.28 billion soms (85%).
Cooperation with the Eurasian Reinsurance Company
Kyrgyzstan is a participant in the Eurasian Reinsurance Company (ERC). According to the law on the ratification of the agreement signed in Yerevan in 2022, the republic owns 2% of the authorized capital of the ERC, which amounts to 300 million Russian rubles.
Selection of JSC "GSO"
As part of the draft resolution, it is proposed to designate JSC "GSO" as the national operator for reinsurance, including export risks in cooperation with the ERC.
The Ministry of Economy emphasizes that GSO has a stable financial condition, qualified personnel, and a developed client base. As of January 1, 2025, the authorized capital of the company amounts to 1.14 billion soms, and 100% of the shares belong to the state.
According to the president's decree, the following measures are planned:
- allocation of 150 million soms in 2024 to increase the authorized capital of GSO;
- gradual increase of the capital to 5.15 billion soms by 2028;
- allocation of 100% of GSO's net profit until 2027 to increase the authorized capital.
New Reinsurance Rules
The project also includes the approval of the Regulation on the national operator for reinsurance. According to this document, insurance companies transferring risks to foreign reinsurers must first offer at least 10% of such risks to JSC "GSO," with a planned annual increase of this share to 50%.
Transfer of risks abroad will only be possible upon receiving a written refusal from GSO. All risks subject to reinsurance within the ERC will be transferred exclusively through the national operator.
The ministry is confident that the adoption of this resolution will reduce the outflow of funds abroad, strengthen the national insurance market, and create a modern reinsurance infrastructure in Kyrgyzstan.
The implementation of this initiative is expected to enhance the competitiveness of the insurance sector, protect large investment and infrastructure projects, and promote the development of international cooperation in the field of reinsurance.
