Kyrgyzstan plans to change the mechanism for mandatory insurance of residential premises against fire and natural disasters. A corresponding draft resolution from the Cabinet of Ministers has been presented for public discussion.
New requirements for insurance companies
According to the document, insurance organizations operating in the field of mandatory home insurance will be required to join an insurance pool. This pool functions as a non-profit organization that unites companies to distribute risks and fulfill obligations to citizens.
To participate in the pool, companies must meet several criteria, including holding a license, financial stability, and solvency. Insurers must also possess the technical infrastructure for integration into a unified information system.
Digital accounting and payouts
The draft proposes the creation of a unified information system to streamline all processes. It will facilitate:
- registration of insurance policies
- recording of fire and natural disaster notifications
- acceptance of compensation claims
- recording of payouts and claim denials
Insurance organizations will be required to review citizen appeals in a timely manner and make payout decisions in accordance with the law. Additionally, the document provides for the organization of risk reinsurance for more effective distribution of financial responsibility.
Context
An insurance pool is an association of insurance organizations created to ensure payouts to owners of insured housing in the event of insured incidents.
