Committee on Work with National Insurance Brokers

The Committee on Work with National Insurance Brokers is a standing body of the Association of Insurance Agents and Brokers. It brings together issues concerning national insurance brokers — legal entities resident in the Republic of Kazakhstan operating under a licence issued by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market. The Committee studies brokerage practice, prepares proposals for the Board and helps ensure that brokers work according to uniform professional rules in the interests of their clients.

Objectives of the Committee

• Summarising the practice of placing clients' risks with insurance organisations and, under reinsurance contracts, with reinsurance organisations.
• Developing and updating the professional standard of an insurance broker: requirements for analysing client needs, selecting insurance terms, disclosing information and servicing the contract.
• Studying issues of interaction between brokers and insurers and reinsurers, and preparing recommendations on fair business practice.
• Collecting brokers' questions related to licensing and other regulatory requirements and preparing a consolidated position for discussion with the regulator.
• Developing broker profiles in the register of insurance brokers so that clients receive complete and up-to-date information.
• Developing brokerage services for small and medium-sized businesses and in the regions of Kazakhstan.
• Participating in the preparation of training and accreditation programmes for insurance broker specialists.

Goals of the Committee

The Committee strives to ensure that an insurance broker's services are clear to the client and that the broker's relations with insurers and reinsurers are built on transparent terms. The goals of the Committee are to raise the professional level of brokers, ensure consistent approaches to risk placement, protect the legitimate interests of brokers and strengthen clients' trust in insurance intermediation.

Regulations on the Committee

The Committee's procedures are set out in the Regulations on the Committee on Work with National 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 — insurance brokers and their representatives;
• meetings are held at least once a quarter, and 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 National 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 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 or particular classes of insurance, 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 professional platform for national insurance brokers. Issues of branches of non-resident insurance brokers and cross-border risk placement are handled by the Committee on Work with Foreign Insurance Brokers; the committees consider issues common to all brokers jointly. It discusses issues that an individual broker cannot resolve independently: uniform approaches to risk placement, the terms of interaction with insurers and reinsurers, and the application of regulatory requirements. Through the Committee, the Association receives information on brokerage practice and takes it into account in the professional standard, training programmes and proposals for improving legislation. For clients, the Committee's work means clearer and more predictable brokerage services.

Every 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.