Committee on Work with Foreign Insurance Brokers

The Committee on Work with Foreign Insurance Brokers is a standing body of the Association of Insurance Agents and Brokers. It brings together issues of branches of insurance brokers that are non-residents of the Republic of Kazakhstan, opened with the permission of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, as well as foreign insurance brokers involved in placing the risks of Kazakhstan clients and in reinsurance. Such brokers have their own tasks: opening and operating a branch under Kazakhstan rules, cross-border risk placement, international insurance programmes, and the requirements of currency and tax legislation. The Committee studies this practice, prepares proposals for the Board and helps foreign brokers organise their work on the Kazakhstan market according to uniform professional rules.

Objectives of the Committee

• Summarising the practice of opening and operating branches of non-resident insurance brokers: the regulator's permission, forming the branch's assets, and requirements for executives and reporting.
• Studying the practice of placing the risks of Kazakhstan clients with foreign insurance and reinsurance organisations, including under international insurance programmes.
• Collecting foreign brokers' questions related to the legislation of the Republic of Kazakhstan on insurance activity, currency and tax legislation, anti-money laundering requirements and sanctions restrictions, and preparing a consolidated position for discussion with the regulator.
• Adapting the professional standard of an insurance broker to the operation of branches of non-resident brokers and to cross-border transactions.
• Facilitating interaction between foreign brokers and Kazakhstan insurance organisations, national insurance brokers and insurance agents.
• Participating in the preparation of training and accreditation programmes for branch specialists, including the study of Kazakhstan legislation and market practice.
• Developing the profiles of branches of non-resident brokers in the register of insurance brokers.

Goals of the Committee

The Committee strives to ensure that foreign brokers operate on the Kazakhstan market openly and under clear rules, and that clients gain access to international insurance and reinsurance capacity. The goals of the Committee are clear operating conditions for branches of non-resident brokers, fair practice of cross-border risk placement, protection of the legitimate interests of foreign brokers and bringing Kazakhstan insurance intermediation closer to international practice.

Regulations on the Committee

The Committee's procedures are set out in the Regulations on the Committee on Work with Foreign Insurance Brokers. The key provisions of the document are as follows:

• the Committee operates on the basis of the legislation of the Republic of Kazakhstan, including the Law "On Insurance Activity", as well as the constituent and internal documents of the Association;
• the Chair of the Committee is appointed or elected by the Board, and Committee members are drawn from among the members of the Association — branches of non-resident insurance brokers and representatives of foreign insurance brokers;
• meetings are held at least once a quarter, including by means of remote communication; decisions are taken by a simple majority of votes provided a quorum of more than half of the Committee members is present;
• minutes are drawn up for each meeting, and the Committee's decisions take effect after approval by the Board.

The full text of the Regulations and the Memorandum of Cooperation with Foreign Insurance Brokers are attached below in PDF format.

Structure of the Committee

• Chair of the Committee — organises the work, chairs meetings and represents the Committee before the Board.
• Committee members — representatives of branches of non-resident insurance brokers and foreign insurance brokers from among the members of the Association.
• Committee Secretary — prepares materials for meetings, keeps the minutes and records incoming requests.

To work through specific issues, for example on reinsurance, international insurance programmes or taxation of cross-border transactions, the Committee may set up working groups and invite experts.

Reporting Line

The Committee is accountable to the Board of the Association. It reports on its work and submits proposals and draft documents for the Board's consideration. The Committee's decisions take effect only after their approval by the Board, so the position the Association presents to insurers and the regulator remains consistent.

Role of the Committee

The Committee serves as a platform for foreign insurance brokers and their branches in Kazakhstan. It discusses the issues a non-resident broker faces: applying Kazakhstan requirements to a branch, cross-border risk placement, and interaction with Kazakhstan insurers and reinsurers. The Committee works together with the Committee on Work with National Insurance Brokers so that market rules are the same for all brokers and the differences between the positions of national and foreign brokers are reflected in the Association's proposals.

A branch of a non-resident insurance broker in the register is an associate member of the Association without an application or fees. Membership is confirmed in the personal account by joining the Memorandum with Insurance Market Participants. Proposals for the Committee's work can be submitted via the Association's contact details.