Code of professional ethics for insurance brokers

1. General Provisions

1.1. The Code of Professional Ethics for Insurance Brokers (hereinafter — the Code) establishes the rules of professional conduct for insurance brokers who are members of the Association of Insurance Agents and Brokers (hereinafter — the Association) when providing brokerage services in the insurance market of the Republic of Kazakhstan.

1.2. The Code applies to insurance brokers operating under a licence issued by the authorised body, as well as to their employees and representatives who interact directly with clients and insurance organisations (hereinafter — brokers).

1.3. The Code supplements, but does not replace, the requirements of the Law of the Republic of Kazakhstan "On Insurance Activity", the Civil Code of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan "On Consumer Protection" and other regulatory legal acts. In the event of any discrepancy, the provisions of the law prevail.

1.4. The purpose of the Code is to ensure that brokers genuinely protect their clients' interests and to maintain trust in insurance intermediation.

2. Core Principles

2.1. A broker is guided by the principles of honesty, competence, confidentiality, respect for clients and colleagues, and compliance with the law.

2.2. A broker does not provide false information, conceal material facts or make promises they cannot keep, including with regard to the amount and timing of an insurance payout.

2.3. A broker does not forge or falsify documents, does not enter inaccurate information into them, and does not induce the client to do so.

3. Representing the Client's Interests

3.1. A broker acts on the instructions and in the interests of the client (policyholder) on the basis of a brokerage agreement and within the scope of the licence issued by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market.

3.2. Before starting work, a broker informs the client of their status and the scope of services provided and presents their licence upon request.

3.3. A broker identifies the client's needs by analysing their risks, existing insurance cover and financial capacity, and then proposes a solution that meets those needs.

3.4. A broker does not go beyond the client's instructions and agrees with the client on any material actions taken on the client's behalf.

3.5. A broker does not use their status as a member of the Association to create the impression of guarantees that the Association does not give.

4. Independence and Impartiality in Selecting an Insurer

4.1. A broker selects an insurance organisation and, where necessary, a reinsurance organisation independently and impartially, based on the client's interests, the terms of cover, the insurer's financial stability and its claims settlement practice.

4.2. A broker requests quotes from several insurance organisations and compares them on comparable parameters: scope of cover, exclusions, deductible, insurance premium and payout procedure.

4.3. If the nature of the risk does not allow several quotes to be obtained, the broker informs the client and explains why.

4.4. A broker substantiates their recommendation by explaining to the client why this particular option is proposed and what its advantages and limitations are compared with others.

4.5. The final decision is made by the client. A broker does not impose a choice and does not conceal offers that are more favourable to the client but less favourable to the broker.

5. Disclosure of Remuneration and Relationships with Insurers

5.1. Before an insurance contract is concluded, a broker informs the client of the amount of their remuneration or the method of determining it, as well as its source: the client, the insurance organisation, or both.

5.2. A broker discloses to the client any relationships with insurance organisations that may influence their recommendations: equity participation, affiliation, arrangements for preferential placement of risks and other benefits.

5.3. A broker does not receive hidden remuneration and charges the client only under the terms of the brokerage agreement.

6. Conflict of Interest

6.1. A broker avoids situations in which their own interests or the interests of related parties may affect the objectivity of their recommendations.

6.2. If a conflict of interest has arisen or may arise, the broker discloses it to the client before providing the service and takes measures to resolve it. If the conflict cannot be resolved, the broker declines to provide the service.

6.3. If a broker simultaneously serves clients with opposing interests, they inform each of them and ensure that their information is handled separately.

6.4. A broker does not accept gifts or other benefits from insurance organisations that may influence their recommendations, other than remuneration disclosed to the client.

7. Servicing the Insurance Contract

7.1. A broker explains to the client the material terms of the chosen contract: scope of cover, sum insured, exclusions, deductible, premium payment procedure, the procedure to follow in the event of an insured event and how to obtain a payout.

7.2. A broker checks that the insurance contract complies with the terms agreed with the client and delivers the documents to the client in a timely manner.

7.3. If a broker receives insurance premiums for transfer to an insurance organisation, they transfer them promptly and in full.

7.4. A broker passes on to the insurance organisation accurate information about the risk received from the client and warns the client about the consequences of providing incomplete information.

8. Claims Settlement

8.1. When an insured event occurs, a broker represents the client's interests before the insurance organisation within the scope of the instructions received.

8.2. A broker explains to the client the necessary steps and deadlines, helps to collect and submit documents, liaises with the insurance organisation and keeps the client informed of the progress of the claim.

8.3. A broker checks the insurance organisation's decision for compliance with the terms of the contract and explains it to the client. If the client disagrees with the decision, the broker helps to prepare a claim and informs the client of the possibility of settling the dispute through mediation.

8.4. A broker makes no promises about the outcome of the settlement and does not prevent the client from applying independently to the insurance organisation, the authorised body or the court.

9. Confidentiality

9.1. A broker keeps confidential information about the client and their risks: property, activities, losses, financial position and insurance terms.

9.2. When requesting quotes, a broker provides insurance and reinsurance organisations only with the information necessary to assess the risk, and only with the client's consent.

9.3. A broker does not use one client's information in the interests of another client or in their own interests, and complies with the requirements of the Law of the Republic of Kazakhstan "On Personal Data and Their Protection".

10. Qualifications and Responsibility

10.1. A broker engages employees to work with clients who know insurance legislation, the terms of insurance products and claims settlement procedures.

10.2. A broker organises training for employees, ensures that they complete training and accreditation in accordance with the procedure established by the Association, and that their certificates remain valid.

10.3. A broker is liable to the client for the actions of their employees and representatives and for improper performance of the brokerage agreement in accordance with the law and the agreement.

10.4. A broker gives advice only within their competence. If a question goes beyond it, the broker informs the client and recommends consulting a relevant specialist.

11. Fair Competition

11.1. A broker's advertising and information materials are accurate and do not mislead consumers as to the terms of insurance, cost, payout guarantees, the broker's independence or their powers.

11.2. A broker does not disseminate defamatory information about other brokers, agents or insurance organisations, does not use unsubstantiated comparisons, and does not induce a client to terminate an existing contract without explaining the consequences.

11.3. Professional disagreements with colleagues are resolved through negotiation and, if no agreement is reached, with the participation of the Association, including through mediation.

12. Complaints and Liability

12.1. A broker accepts and considers client complaints, responds to them on the merits and within a reasonable time, analyses the causes of complaints and eliminates them.

12.2. Complaints about violations of the Code are considered by the Disciplinary Committee of the Association. To consider a specific complaint, it forms a Disciplinary Council in accordance with the Rules for the Consideration of Complaints by the Disciplinary Council.

12.3. For violation of the Code, a broker may be subject to a remark, a warning, suspension of accreditation or removal from the Association's register.

12.4. Measures applied by the Association do not release a broker from liability provided for by the legislation of the Republic of Kazakhstan.

13. Final Provisions

13.1. A broker confirms their commitment to comply with the Code by acceding to the Memorandum with insurance market participants.

13.2. Amendments to the Code are made by decision of the Board of the Association and published on the website.

13.3. The Association provides clarification on the interpretation of the Code at a broker's request.