Deputy Chairman of the Board of the State Insurance Organization OJSC Baktygul Abdyzhaliev recently discussed the importance of insurance for the sustainable development of Kyrgyzstan's economy in an interview on Birinchi Radio, as well as the process of creating a national reinsurance operator.
According to him, the last five years have been significant for the country. Kyrgyzstan has managed not only to restore its economy but also to achieve stable growth, strengthen state institutions, and begin systematic development of citizens' welfare. In this context, insurance plays a key stabilizing role.
“This is not new for us; the whole civilized world is moving in this direction. Without financial instruments like insurance, it is difficult to achieve sustainable growth and dynamic economic development,” Abdyzhaliev added.
He also noted that mandatory housing insurance appeared in the country ten years ago; however, due to the lack of punitive sanctions, its coverage remained at 10%. Mainly, only public sector workers were insured. The general population was skeptical about insurance due to a lack of information and absence of political support.
However, he stated that the situation began to change against the backdrop of overall economic growth.
“Today, we observe the development of the state in all sectors of the economy. We rank third in the world in terms of GDP growth rates, and we consistently lead in economic growth within the CIS. This is a source of pride and highlights our potential for further progress,” he noted.
Currently, work is actively underway to create a national reinsurance operator in accordance with presidential decree No. 79, which was signed on March 20, 2024. These functions will be assigned to the State Insurance Organization.
Abdyzhaliev emphasized that the creation of this 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 bear enormous risks, sometimes in the billions of soms. In the case of large payouts, companies may struggle. Here, state intervention through the national reinsurance operator is necessary,” he explained.
According to him, most participants in the insurance market reacted positively to this initiative. Approximately 90% of private insurance companies support the creation of a national operator, and some have already begun transferring part of their risks to the State Insurance Organization.
He also noted that previously a significant share of risks was transferred to foreign reinsurance companies, which sometimes led to serious problems for Kyrgyz insurers, including bankruptcy threats 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 simpler, more reliable, and more beneficial for local businesses,” he added.
Abdyzhaliev reminded that since 2024, the insurance market has begun to develop actively: the coverage of mandatory housing insurance has increased to nearly 30%, and OSAGO has been successfully implemented. This has contributed to the population becoming more aware of the benefits of insurance.
He also emphasized that the creation of a national reinsurance operator will not lead to market monopolization; on the contrary, it will promote its development.
“Risks must be distributed. The state helps the market by lending its support. This is beneficial for both businesses and citizens, as well as for the economy of the country as a whole,” he concluded.
