Kazakhstan to introduce online insurance next year

ASTANA – Starting in 2019, Kazakh citizens will be able to complete insurance contracts online, Kazakh National Bank press service reported recently.

Photo credit: lifeinsurance.kz

The changes in the country’s legislation adopted July 2 allow online insurance and legitimisation of insurance policies in electronic format, including in relation to both compulsory and volunteer insurance.

With online insurance coming into effect, paper insurance contracts will no longer be used and contracts will be verified through a single database. The changes will also affect car users who will not need to show insurance on paper to a police officer.

“Introduction of online insurance will allow cutting the cost of insurance for population and businesses, signing of contracts directly through online services of insurance firms without the need to visit an office and interact with other intermediaries as well as speed up insurance payment process,” said a National Bank statement.

“The law is designed to increase access, quality and cut the cost of insurance for people, protect the rights of people using insurance services as well as boost the stock market,” said the statement.

The document also said insurance companies will be able to offer up to 10 percent discount to vehicle owners for compulsory insurance of civil liability signed in electronic format.

Other changes introduced by the recently adopted law on insurance and stock market development include compulsory insurance for citizens traveling abroad, integration of central securities depository and integrated securities registrar. The law also provides for the National Bank taking over of functions from the stock market to create and ensure the work of an expert committee on managing securities at the stock market and the optimisation of permission procedures on the issuing, placing and closing of non-state equity securities.

The creation of an integrated information system for the over-the-counter securities market and optimisation of procedures for dividend payments stock are also stipulated in the document.

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