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The document ceased to be valid since  March 16, 2016 according to Item 2 of the Resolution of Board of National Bank of the Republic of Kazakhstan of December 19, 2015 No. 240

THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND SUPERVISION OF THE FINANCIAL MARKET AND THE FINANCIAL ORGANIZATIONS

of March 25, 2006 No. 83

About approval of Rules of calculation of the coefficients characterizing unprofitability of the insurance (reinsurance) organization

(as of September 3, 2010)

For the purpose of objective assessment of results of insurance activity and uniform approach to calculation of the financial performance characterizing efficiency of insurance business, and also for receipt of the analysis of unprofitability on all classes of insurance, possibility of forecasting of market development of insurance services and monitoring of the risks accepted by insurance companies the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations (further - the Agency) DECIDES:

1. Approve the enclosed Rules of calculation of the coefficients characterizing unprofitability of the insurance (reinsurance) organization.

2. This resolution becomes effective after fourteen days from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan.

3. To department of supervision of subjects of the insurance market and other financial organizations (Karimullin A. A.):

1) together with Legal department (Baysynov M. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in ten-day time from the date of adoption of this resolution to bring this resolution to the attention of the interested divisions of the Agency, the insurance (reinsurance) organizations, actuaries, Consolidation of legal entities "Association of financiers of Kazakhstan", Public association "Society of Actuaries of Kazakhstan".

4. To department of the international relations and public relations (Pernebayev T. Sh.) take measures to the publication of this resolution in mass media of the Republic of Kazakhstan.

5. To impose control of execution of this resolution on the vice-chairman of the Agency Uzbekov G. N.

 

Chairman A. Dunayev

Approved by the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of March 25, 2006 No. 83

Rules of calculation of the coefficients characterizing unprofitability of the insurance (reinsurance) organization

These rules are developed for the purpose of implementation of Articles 43, of 75-1 Law of the Republic of Kazakhstan "About insurance activity" and determine procedure of payments of the coefficients characterizing unprofitability (unprofitability coefficient, cost ratio, the combined coefficient) of the insurance (reinsurance) organization.

Chapter 1. General provisions

1. In these rules the following concepts are used:

1) the earned insurance premium - the part of insurance premium relating to the expired part of effective period of the policy;

2) sheet year - the period between start date of effective period and expiry date of the policy;

3) expenses on settlement - additional expense amount of the insurance (reinsurance) organization on acquisition of services (services of the appraisers and legal services) connected with implementation of insurance payments;

4) the net earned insurance premium - the part of insurance premium relating to the expired part of effective period of the policy without the overcautious person's share;

5) net amount of payments - the amount of insurance payments without the overcautious person's share;

6) the suffered losses - include insurance payments, expenses on settlement, and also change in reserves of losses for the period of calculation;

7) net amount of changes in reserves of losses - changes in reserves of losses without the overcautious person's share;

8) expenses - expenses on payment of commission fee, the fiscal duties, fees in JSC Fund of Guaranteeing Insurance Payments, administrative expenses and other, except for expenses on settlement.

2. Calculation of the coefficients characterizing unprofitability of the insurance (reinsurance) organization extends to all classes (types) of insurance, except for classes (types) of accumulative insurance.

3. All insurance premiums and losses used for calculation belong to one sheet year.

4. The insurance (reinsurance) organizations monthly, no later than 18:00 hours of time of the city of Astana of the fifth working day of the month following reporting submit the report on calculation of the coefficients characterizing unprofitability according to appendix to these rules (further - the report).

4-1. The report is submitted on electronic and paper carriers. The report on paper as of reporting date are signed by the first head (for its absence - person, it replacing), the chief accountant of the insurance (reinsurance) organization, it is certified by seal of the insurance (reinsurance) organization, is confirmed by the actuary and it is represented in authorized body, and also it is stored in insurance (reinsurance) the organizations.

Upon the demand of authorized body the insurance (reinsurance) organization no later than two working days from the date of receipt of request represents the reporting as of certain date on paper.

Identity of the data represented on the electronic medium on paper is provided to data with the first head of the insurance (reinsurance) organization (for its absence - person, it replacing) and the chief accountant. The report on the electronic medium is submitted with use of transport system of the guaranteed delivery of information with cryptographic remedies providing confidentiality and not adjustability of the represented data.

4-2. The unit of measure used in case of creation of the report is established in thousands of tenges. The amount less than five hundred tenges in the report is rounded to zero, and the amount equal five hundred tenges and above, is rounded to one thousand tenges.

Chapter 2. Procedure of payments of the coefficients characterizing unprofitability

5. The combined coefficient is calculated as the amount of coefficient of unprofitability and cost ratio.

6. Calculation of coefficient of unprofitability needs to be made both taking into account the overcautious person's share, and without the overcautious person's share.

7. The unprofitability coefficient taking into account share of the overcautious person is calculated on each class of insurance separately or on all insurance portfolio of the insurance (reinsurance) organization as the relation of the amount of the suffered losses to the amount of the earned insurance premiums on formula:

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