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2.2.22. Effecting Contracts of Insurance
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2. AUTHORISATION (GETTING REGULATED)
2.2. Becoming regulated as an Authorised Firm
6. MISCELLANEOUS
The List of financial services and ancillary services provided by the Astana International Financial Centre participants, subject to the financial monitoring
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Practical Guidance to AIFC Anti-Money Laundering and Counter – Terrorist Financing Framework
Entire Act

2.2.22. Effecting Contracts of Insurance

2.2.22.1. General description

Effecting Contracts of Insurance is listed in section 22 of Schedule 1 of GEN. It means effecting Contracts of Insurance as Principal, i.e. as a seller.

The ordinary meaning of “effect” is to cause something to happen or bring something about. “Effecting” a contract of insurance involves more than merely making the contract. It could also include the offering of insurance services and the negotiation of the terms of the contract, and steps necessary to conclude the insurance contract (for example, confirmation of the cover and policy issuance).

An Authorised Firm authorised to carry on the regulated activity of Effecting Contracts of Insurance is subject to prudential supervision and must comply with AIFC Insurance and Reinsurance Prudential Rules.

Different insurance categories are presented in the AIFC Insurance and Reinsurance Prudential Rules (General Insurance Business and Long-Term Insurance).

Acting as principal implies exclusion of agents who act on behalf of insurers.

Currency regulation 

Currency transactions will be performed via AIFC Banks if processed in only foreign currency, and via second-tier banks in any currency. For more details of transactional implications see Chapter 4 of PERG.

The table below illustrates currency regulation implications if services are offered to residents of Kazakhstan that are not AIFC Participants.

Are you planning to offer your services to legal entities or natural persons – residents of Kazakhstan that are not AIFC Participants?

Yes:

 

Your services will be subject to the AIFC Rules on Currency Regulation:

 

Name of allowed activity:

(1)    Direct voluntary insurance:

(a)      air transport insurance

(b)      water transport insurance

(c)      space objects insurance

(d)      insurance of cargo related to air transport, water transport and space objects

(e)      legal liability insurance of air transport owners

(f)       legal liability insurance of water transport owners

(g)      legal liability insurance of space objects owners

(2)    Reinsurance activities:

(a)     acceptance of all risks from Kazakhstani insurers for reinsurance

(3)    Additional types of insurance:

(a)     insurance of guarantees and bails

(b)     insurance of court costs

(c)      title insurance

(d)     Islamic insurance

(4)    New types of specific risks insurance:

(a)     catastrophe risks

(b)     climate related risks

(c)      cyber risks

(d)     terrorism related risks

(e)     political risks

 

 

Relevant reference to Schedule 2 to the AIFC Rules on Currency Regulation:

2.1., 2.2., 2.4., 2.5 in the list of financial services.

 

Type of currency:

Any currency

 

Transaction:

Via AIFC Banks: only foreign currency

Via second-tier banks: any currency

 

Currency reporting:

No specific reporting for a financial service.

Transactional reporting may be applicable (see Chapter 4 of PERG for more details). 

 

No:

Subrule 3.3.2 of AIFC Rules on Currency Regulation applies. 

For more details see Chapter 4 of PERG.

2.2.22.2. Exclusions

There are none.