Gosstrakh wants to become the national reinsurance operator

The Cabinet of Ministers of the Kyrgyz Republic is preparing a resolution to recognise OJSC State Insurance Organisation (OJSC SIO) as the national reinsurance operator. The aim of the initiative is to create national reinsurance capacity, increase the reliability of the insurance market and the financial stability of insurance companies.

The draft resolution is open for public discussion on the Unified Portal of Regulatory Legal Acts, which allows experts and interested parties to submit their comments and suggestions.

The document provides for:

• the use of OJSC GSO for the initial acceptance of risks before their transfer to foreign reinsurance companies;
• a gradual increase in the share of risks accepted by OJSC GSO from 10% to 50%;
• the transfer of risks to the Eurasian Reinsurance Company (ERC) only through the national operator.

As of 1 January 2025, 100% of the authorised capital of OJSC GSO belongs to the state, amounting to 1.144 billion KGS. The company has qualified personnel and financial stability to insure large projects and investment risks.

Earlier in 2024, 85% of insurance premiums were transferred for reinsurance abroad, and only 14.8% within the country. The designation of OJSC GSO as the national operator should reduce the outflow of funds outside the republic and create an international-level reinsurance infrastructure.

The draft resolution does not involve additional budget expenditures, does not pose social, environmental or corruption risks, and complies with current legislation.