Regulation of reinsurance activities in the Republic of Kazakhstan

Abstract

Reinsurance is important for ensuring the financial stability of the country’s insurance market, which determines the need for sufficiently strict legal control over this segment of the insurance market. The purpose of this article is a critical understanding of modern legislation governing the development of reinsurance activities in the Republic of Kazakhstan and the identification of those norms and requirements that significantly affect the development of the reinsurance market in the country. The results of the study showed that restrictive reinsurance measures, tested by world insurance practice, are applied in the country. The author made an attempt to identify the specifics of regulatory norms in the Republic of Kazakhstan, which impede cooperation in the field of reinsurance with the international community. Attention is drawn to the established high entry barriers for the participation of non-resident reinsurers in the reinsurance market of the Republic of Kazakhstan, which involves the purchase of reinsurance coverage mainly from leading foreign reinsurers. In order to expand the reinsurance capacity and reduce the cost of reinsurance, the author proposes to use the internal reserves of the national insurance market, as well as alternative reinsurance markets, one of which can be considered a single reinsurance space within the integration association of the EAEU countries. In this regard, it is necessary to harmonize the laws of these countries, especially in terms of determining the financial stability of insurance companies and assessing the solvency of reinsurers. The results of the study can be used to bring the legal regulation of reinsurance activities in the Republic of Kazakhstan in line with international practice.