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

of December 26, 2025 No. 84

About approval of requirements to assessment and structure of insurance bonds according to international accounting standards, automation of their assessment, technique of assessment of insurance bonds, procedure and terms of its coordination

According to Item 2 of article 47-1 of the Law of the Republic of Kazakhstan "About insurance activity" and subitem 2-1) of article 11 of the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and the financial organizations" Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

1. Approve enclosed:

1) Requirements to assessment and structure of insurance bonds according to international accounting standards;

2) Requirements to automation of assessment of insurance bonds;

3) Requirements to technique of assessment of insurance bonds;

4) Requirements to procedure and terms of coordination of technique of assessment of insurance bonds.

2. To provide to department of the insurance market and actuarial calculations in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

3. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

4. This resolution becomes effective since January 1, 2026, except for the subitem 2) of Item 1 of this resolution which becomes effective since January 1, 2027.

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of December 26, 2025 No. 84

Requirements to assessment and structure of insurance bonds according to international accounting standards

Chapter 1. General provisions

1. These Requirements to assessment and structure of insurance bonds according to international accounting standards (further – Requirements) are developed according to Item 2 of article 47-1 of the Law of the Republic of Kazakhstan "About insurance activity" (further – the Law) and subitem 2-1) of article 11 of the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and the financial organizations" and establish requirements to assessment and structure of insurance bonds according to international accounting standards.

2. Requirements extend to the insurance (reinsurance) organizations, including the Islamic insurance (reinsurance) organizations, branches of the insurance nonresident organizations of the Republic of Kazakhstan and branches of the Islamic insurance nonresident organizations of the Republic of Kazakhstan.

3. In Requirements the following concepts are used:

1) acquisition cash flows – the cash flows caused by costs to sell, underwriting and the conclusion of group of insurance contracts which are directly connected with portfolio of insurance contracts to which this group belongs. Such cash flows include cash flows which cannot be carried directly to separate agreements or groups of insurance contracts in portfolio;

2) actuarial methods – the economic-mathematical methods of calculations applied by the actuary when calculating insurance bonds;

3) actuarial assumptions – the quantitative and high-quality assumptions used by the actuary in case of assessment of insurance bonds including forecasts of rather insurance payments, frequency and size of losses, dynamics of insurance premiums, behavior of insurers, expense level, interest rates, financial and economic parameters;

4) burdensome insurance contracts – insurance contracts according to which for date of initial recognition the cash flows on agreement performance carried to these agreements, earlier recognized acquisition cash flows and cash flows arising under these contracts for date of initial recognition in the set represent net outflow of funds;

5) the predicted payments – the obligations of the insurance (reinsurance) organization connected with prolongation (re-examination) of extent of loss of professional working capacity (further – degree of UPT) the beneficiary or indemnification to persons which suffered damage as a result of the death of the worker according to Article 940 of the Civil code of the Republic of Kazakhstan (Special part) (further – the Civil code);

6) aggregation – group of insurance contracts for assessment, accounting and representation of insurance bonds;

7) curve of discount rates – the sequence of the interest rates reflecting the cost of money in time for various terms, used for reduction of future cash flows to current value;

8) settlement date – date for which calculation of insurance bonds is made;

9) the suffered losses – the amount of effected payments and the declared, but not settled losses of the insurance (reinsurance) organization;

10) the overcautious person's share in insurance bonds are the assets or liabilities of the insurance (reinsurance) organization arising from agreements of reinsurance, estimated on the basis of actuarial calculations for settlement date;

11) non-financial risk – the risks which are not relating to financial risks;

12) the risk amendment on non-financial risk (further – the risk amendment) – compensation required for acceptance of uncertainty concerning the amount and terms of cash flows which result from non-financial risk in process of execution of insurance contracts;

13) financial risk – risk of change of one or several certain factors possible in the future: interest rate, the price of the financial instrument, the currency rate, price index, credit rating or other variable, under condition for non-financial variable that this variable is not specific to one of agreement parties of insurance (reinsurance);

14) the declared, but not settled loss – the requirement to the insurance (reinsurance) organization about approach of insurance event and (or) insured event and (or) about implementation of insurance payment, declared by the insurer (insured, the beneficiary) in writing, or according to the procedure, provided by the laws of the Republic of Kazakhstan on obligatory types of insurance and (or) the insurance contract (reinsurance) on which insurance payment was not performed or performed not in full;

15) cash flows within the insurance contract (reinsurance) – the expected entering and outgoing cash flows following from the rights and obligations of the insurance (reinsurance) organization existing on reporting date, and which are directly connected with accomplishment of conditions of the current agreement of insurance (reinsurance) throughout its effective period;

16) insurance bonds – the obligations of the insurance (reinsurance) organization according to insurance contracts (reinsurance) estimated on the basis of actuarial calculations for settlement date;

17) insurance event – the event having probability in subsequent to be acknowledged insured event according to the insurance contract (reinsurance);

18) obligations on the insurance coverage rest – assessment of the insurance bonds connected with future insurance events which can take place during remaining period of action of current agreements of insurance, less the expected future receipts under these agreements;

19) insurance revenue – the amount representing the acknowledged income of the insurance (reinsurance) organization for the rendered insurance services within group of insurance contracts, reflecting the right of the organization to receive compensation in exchange for provision of such services;

20) portfolio of insurance contracts – set of the insurance contracts united on the basis of uniformity of insurance risk and managed jointly;

21) group of insurance contracts – the set of insurance contracts which is marked out as a result of separation of portfolio of insurance contracts, at least, for contracts which were signed during the period which is not exceeding one year, and which in case of initial recognition:

are burdensome;

are characterized by lack of considerable probability that subsequently they will become burdensome;

the insurance contracts which are not relating to two groups stated above;

22) expenses on settlement of insurance losses – expense amount of the insurance (reinsurance) organization of the expert, consulting or other services suffered for payment connected with assessment of the size and decrease in damage (harm) caused to valuable interests of the insurer which arose in connection with insured events;

23) segmentation – separation of insurance contracts into portfolios, groups on unprofitability and annual cohorts for providing correct assessment;

24) obligations on the arisen insurance losses – assessment of insurance bonds, arising in connection with insured events which already occurred, but on which insurance payments fully or partially are not made yet;

25) authorized body – authorized body on regulation, control and supervision of the financial market and the financial organizations;

26) margin for the services provided by the agreement – the component of asset carrying amount or the obligation on group of insurance contracts representing not earned profit which the insurance (reinsurance) organization will recognize in process of rendering the services provided by insurance contracts (reinsurance) in this group;

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