BAKU, Azerbaijan, Dec. 10
By Nargiz Sadikhova - Trend:
The Kazakh Agency for Regulation and Development of Financial Market has postponed a number of regulatory measures to preserve liquidity and maintain the stability of the insurance market, the agency told Trend on Dec. 10.
The reporting deadlines set upon some regulatory legal acts of Kazakhstan for financial organizations, including insurance organizations, were extended due to the introduction of a state of emergency in the country.
As part of regulatory measures, the amendments were made for the period until September 30, 2020, regarding the requirements for weighing the assets of insurance organizations by the degree of credit risk.
Thus, the rating of non-government debt securities issued by international financial organizations was changed during the suspension period.
"At the same time, according to the recommendations of the International Monetary Fund, financial regulators must not weaken prudential requirements in stress (crisis) situations, as this will stimulate excessive risk by financial institutions and will not allow achieving the desired result," the agency said.
Thus, the agency did not reduce the requirements for prudential standards for insurance organizations.
Today, insurance companies are showing growth in premium collection. The volume of insurance premiums as of September 1, 2020, increased by 7.3 percent compared to the same indicator as of September 1, 2019, and amounted to 338 billion tenge.
"The prudential standards established upon the legislation of Kazakhstan are being fulfilled," the agency said. "The exception is Grain Insurance Company, the license of which #2.1.37 was suspended for a period of 6 months for non-compliance with the requirements of prudential standards."