On Birinchi Radio, the Deputy Chairman of the Board of the State Insurance Organization OJSC, Baktygul Abdyzhaliev, discussed the significance of insurance for the sustainable development of Kyrgyzstan's economy, as well as the progress in creating a national reinsurance operator.
He noted that the last five years have been an important stage for the country. Kyrgyzstan has managed not only to restore its economy but also to ensure stable growth, strengthen state institutions, and begin a systematic improvement in the population's standard of living. Insurance plays a key role in this process.
“This is not a novelty for us; the entire civilized world follows a similar path. It is practically impossible to ensure sustainable growth and dynamic economic development without financial instruments such as insurance,” emphasized Abdyzhaliev.He also reminded that mandatory housing insurance was introduced ten years ago, but due to the lack of penalties, coverage did not exceed 10%. The majority of the insured were budget employees, while the general population showed distrust towards insurance, which was related to a lack of informational support and political will.
However, the situation began to change against the backdrop of economic growth in the country.
“Now we are witnessing the development of the state in all sectors of the economy. We rank third in the world in GDP growth rates and have been leading in the CIS in economic growth for several years. This is a source of pride and confirms that we have the potential for further progress,” he noted.Abdyzhaliev also reported on the current efforts to create a national reinsurance operator in accordance with Presidential Decree No. 79 of March 20, 2024, “On Measures to Develop the Insurance Market.” These tasks will be assigned to the State Insurance Organization.
According to him, the creation of such an operator is aimed at protecting and stabilizing the insurance market, as well as supporting private insurance companies.
“Insurance companies offer policies at relatively low prices but take on significant risks, sometimes in the billions of soms. In the case of large payouts, a company may not cope, and here state intervention in the form of a national reinsurance operator is necessary,” he explained.The Deputy Chairman noted that most participants in the insurance market responded positively to this initiative. About 90% of private insurance companies support the creation of a national operator, and some have already begun to transfer part of their risks to the State Insurance Organization for reinsurance.
He also pointed out that previously a significant portion of risks was transferred to foreign reinsurance companies, which sometimes caused serious problems for Kyrgyz insurers and even threatened their bankruptcy due to refusals to pay.
“To avoid dependence on foreign companies with strict rules and sanctions, the state is creating a national operator here in Kyrgyzstan. This is more transparent, reliable, and beneficial for local businesses,” he added.Abdyzhaliev reminded that since 2024, the insurance market has started to develop actively: the coverage of mandatory housing insurance has increased to nearly 30%, and OSAGO has been successfully implemented. This has contributed to a better understanding of the advantages of insurance among the population.
He emphasized that the creation of a national reinsurance operator will not lead to monopolization; on the contrary, it will promote market development.
“Risks must be distributed. Here, the state provides its support to the market. This is beneficial for both businesses and citizens, as well as for the economy as a whole,” he concluded.
