Requirements for formation, calculation methodology and placement of insurance reserves

Official source: Adilet / https://adilet.zan.kz/rus/docs/V1900018290 The relevance of the editorial office has been verified: 2026-06-21.

RCPI note! For the procedure for enacting this resolution, see p. 6.

In accordance with clause 3 Article 47 of the Law of the Republic of Kazakhstan “On Insurance Activities”, the Board of the National Bank of the Republic of Kazakhstan DECIDES:

Footnote. Preamble - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated December 27, 2024 No. 87 (shall be enforced three months after the day of its official publication).

Approve the attached Requirements to the formation, methodology for calculating insurance reserves and their structure (hereinafter referred to as the Requirements).
To recognize as invalid:

resolution of the Board of the National Bank of the Republic of Kazakhstan dated May 6, 2014 No. 76 “On approval of the Requirements for the formation, methodology for calculating insurance reserves and their structure (registered in the Register of State Registration of Normative Legal Acts under No. 9529, published on July 2 2014 in the information and legal system "Adilet");

2). insurance activities" (registered in the Register of State Registration of Normative Legal Acts under No. 14277, published on October 24, 2016 in the Adilet information and legal system).

The Department for Regulation of Non-Bank Financial Organizations (A.M. Kosherbaeva), in accordance with the procedure established by the legislation of the Republic of Kazakhstan, shall ensure:

together with the Legal Department (Sarsenova N.V.) state registration of this resolution with the Ministry of Justice of the Republic of Kazakhstan;
within ten calendar days from the date of state registration of this resolution, it is sent in the Kazakh and Russian languages to the Republican State Enterprise with the right of economic management "Republican Center for Legal Information" for official publication and inclusion in the Reference Control Bank of Regulatory Legal Acts of the Republic of Kazakhstan;
placement of this resolution on the official Internet resource of the National Bank of the Republic of Kazakhstan after its official publication;
within ten working days after the state registration of this resolution, submission to the Legal Department of information on the implementation of the measures provided for in subparagraphs 2), 3) of this paragraph and paragraph 4 of this resolution.

The Department for the Protection of the Rights of Consumers of Financial Services and External Communications (Terentyev A.L.) ensure that within ten calendar days after the state registration of this resolution, a copy of it is sent for official publication in periodicals.
Control over the implementation of this resolution shall be assigned to the Deputy Chairman of the National Bank of the Republic of Kazakhstan Zh.B. Kurmanov.
This resolution comes into effect upon the expiration of ten calendar days after the day of its first official publication.

Footnote. Clause 6 as amended by the resolution of the Board of the National Bank of the Republic of Kazakhstan dated September 12, 2019 No. 157 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Chairman National Bank

D. Akishev

"AGREED" Statistics Committee Ministry of National Economy Republic of Kazakhstan _____________________ "___" _____________ 2019

Approved by resolution of the Board National Bank Republic of Kazakhstan dated January 31, 2019 No. 13

Requirements for the formation, methodology for calculating insurance reserves and their structure

Chapter 1. General provisions

These Requirements for the formation, methodology for calculating insurance reserves and their structure (hereinafter referred to as the Requirements) are developed in accordance with the Law of the Republic of Kazakhstan “On Insurance Activities” (hereinafter referred to as the Law) and establish requirements for the formation, methodology for calculating insurance reserves and their structure for mandatory and voluntary insurance classes of the general insurance industry and the life insurance industry.

The requirements apply to insurance (reinsurance) organizations, including Islamic insurance (reinsurance) organizations, branches of non-resident insurance organizations of the Republic of Kazakhstan and branches of non-resident Islamic insurance organizations of the Republic of Kazakhstan.

Footnote. Clause 1 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated 02.20.2023 No. 3 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

For the purposes of the Requirements, the following concepts are used:

actuarial methods – economic and mathematical calculation methods used by the actuary when calculating insurance reserves;
catastrophic risk - the risk of loss or adverse change in the value of insurance obligations as a result of significant uncertainty in the assumptions used in pricing and the formation of reserves in relation to extreme and exceptional events;
projected payments - obligations of the insurance (reinsurance) company related to the extension (re-examination) of the degree of loss of professional ability (hereinafter - the degree of UPT) of the beneficiary or compensation for damage to persons who suffered damage as a result of the death of an employee in accordance with Article 940 Civil Code of the Republic of Kazakhstan (Special Part) (hereinafter referred to as the Civil Code);
calculation date – the date on which insurance reserves are calculated;
minimum deposit premium (deposit premium) - the amount of money that is payable to an insurance (reinsurance) company under an insurance (reinsurance) agreement, the terms of which provide for their non-refundability;
unearned insurance premium - part of the insurance premium relating to the remaining period of insurance protection under the insurance (reinsurance) agreement as of the calculation date;
indexation rate – a rate that increases the amount of insurance payment;
present expected value - the expected (probable) cost of insurance premiums (insurance premiums) or insurance payments or expenses, calculated (discounted) taking into account the interest rate and the period of time between the date of calculation and the date of receipt of the insurance premium (contributions) or the date of insurance payment under the insurance (reinsurance) agreement using tables containing the probabilities of death, disability, illness and values calculated on their basis related to the upcoming life expectancy of persons (hereinafter referred to as tables of mortality, morbidity, disability);
incurred losses - the amount of payments made and declared but unresolved losses of the insurance (reinsurance) company;
declared but unresolved loss - a requirement to the insurance (reinsurance) company about the occurrence of an insured event and (or) an insured event and (or) about the implementation of an insurance payment, declared by the insured (insured, beneficiary) in writing, or in the manner prescribed by the laws of the Republic of Kazakhstan on compulsory types of insurance and (or) an insurance (reinsurance) agreement under which the insurance payment was not made or was not implemented in full;
net premium (net premiums when paid in installments) - the amount of money that is payable to an insurance (reinsurance) company for its acceptance of obligations solely to make insurance payments without taking into account the coverage of other expenses of the insurance (reinsurance) company;
reserve basis - a set of parameter values that affect the amount of insurance reserves under life insurance and annuity insurance contracts;
expenses for settlement of insurance losses - the amount of money needed by an insurance (reinsurance) company to pay for expert, consulting or other services related to assessing the amount and reducing damage (harm) caused to the property interests of the insured that arose in connection with insured events;
insured event - an event that has a likelihood of subsequently being recognized as an insured event in accordance with the laws of the Republic of Kazakhstan on compulsory types of insurance and (or) an insurance (reinsurance) agreement;
insurance reserves – obligations of an insurance (reinsurance) company under insurance (reinsurance) contracts, assessed on the basis of actuarial calculations in accordance with the Requirements;
the reinsurer’s share in insurance reserves – part of the reinsurer’s obligations under the insurance (reinsurance) agreement as of the settlement date;
insurance premium – insurance premium under an insurance (reinsurance) agreement;
net insurance premium – insurance premium without taking into account the reinsurer’s share;
tariff base – a set of parameter values that affect the amount of insurance tariffs under life insurance and annuity insurance contracts.

Footnote. Clause 2 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated 02.20.2023 No. 3 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Chapter 2. Requirements for information necessary for calculating insurance reserves

Insurance reserves are formed by the insurance (reinsurance) organization separately for each insurance (reinsurance) contract and (or) for each class of insurance, and (or) for each declared but unresolved loss, depending on the type of insurance reserve provided for in clause 5 of the Requirements. The calculation of insurance reserves is carried out taking into account the volume of obligations assumed by the insurance (reinsurance) organization under all concluded insurance (reinsurance) contracts, regardless of subsequent reinsurance of risks.

The actuary calculates insurance reserves based on the information contained in the statements of the insurance (reinsurance) company and other information.

Footnote. Clause 3 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

3-1. The results of the calculation of insurance reserves are provided to the authorized body for regulation, control and supervision of the financial market and financial organizations (hereinafter referred to as the authorized body) upon its request and to the National Bank of the Republic of Kazakhstan in accordance with the form, frequency and timing of submission established by resolution of the Board of the National Bank of the Republic of Kazakhstan dated December 31, 2019 No. 275 “On approval of the list, forms, deadlines for submitting reports by an insurance (reinsurance) company and an insurance broker and the Rules for its submission,” registered in the Register of State Registration of Normative Legal Acts under No. 19927.

Footnote. The requirements are supplemented by paragraph 3-1 in accordance with the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

The actuary, no later than the 10th (tenth) working day of the month following the reporting quarter, draws up on paper in any form a justification for calculating insurance reserves, which is signed by the actuary and stored in the insurance organization.

The rationale for calculating insurance reserves contains:

parameters of the reserve basis with justifications for each parameter;

justification for the choice of method for calculating the reserve of occurred but undeclared losses (hereinafter referred to as IBNR) and the reserve of occurred but not yet declared losses (hereinafter referred to as RPENU), outlining information on the number of periods of losses taken into account in the calculation, the frequency of losses, the choice of the loss development coefficient, smoothing of large losses, additional obligations and the calculation of the adjustment factor in accordance with paragraph 16 of the Requirements;

justification for the amounts of estimated costs associated with the consideration and settlement of the amount of insurance payments for the stated claims;

justification for determining major losses (if any);

justification for adjusting the loss taken into account in calculating the average (market average) value of paid claims in accordance with paragraph 22 of the Requirements (if any in the reporting period);

justification for adjusting the loss taken into account when calculating the loss ratio for policies, RNR and (or) RPENU using actuarial methods, in accordance with paragraphs 11-1 and 15 of the Requirements (if any in the reporting period);

justification for determining the probability of a repeated statement used in calculating the reserve for losses that have occurred but are not fully reported (hereinafter referred to as the RPLZU);

justification and calculation of the amount of obligations of the insurance (reinsurance) company associated with the occurrence on the date of calculation of additional risks under concluded insurance (reinsurance) agreements that were not provided for when forming insurance reserves;

the results of a test for the adequacy of loss reserves, including a retrospective analysis based on data for the last 12 (twelve) months, separately for each class of insurance and for the insurance portfolio as a whole;

conclusions about the sufficiency (inadequacy) of insurance reserves and in case of insufficiency of insurance reserves, analysis of the reasons for the insufficiency;

when forming the reinsurer's share in insurance reserves under reinsurance agreements providing for the transfer of more than 80 (eighty) percent of insurance premiums - the conclusion of the reinsurance division on the availability of confirmation of the reinsurer (reinsurers) provided for in paragraph 53 of the Requirements, signed by a senior employee of the insurance (reinsurance) company, whose powers include supervising the issues of the reinsurance division;

other assumptions and assumptions used by the actuary in calculating insurance reserves and the reinsurer's share in insurance reserves, and information necessary to indicate in the justification, in the opinion of the actuary.

Footnote. Clause 4 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Chapter 3. Structure of insurance reserves

Insurance reserves required for formation by an insurance (reinsurance) organization include:

reserve of unearned premiums (hereinafter - RNP) - part of the insurance premium (payments) under an insurance (reinsurance) agreement relating to the period of insurance protection remaining on the calculation date (unearned premium), intended to fulfill obligations to ensure upcoming payments, if they arise in the following reporting periods;
reserve for non-occurring losses (hereinafter referred to as RNL) - the obligations of the insurance (reinsurance) company to make insurance payments for insured events that did not occur on the date of calculation;
loss reserves:

IBNR - assessment of the obligations of the insurance (reinsurance) company to make insurance payments, including expenses for settling losses arising in connection with insured events that occurred in the reporting or preceding periods, the occurrence of which was not declared to the insurance (reinsurance) company in the reporting or preceding periods in the manner established by the law of the Republic of Kazakhstan or the contract;

reserve for declared but unresolved losses (hereinafter referred to as RZNU) - an assessment of the insurance (reinsurance) company's obligations to make insurance payments, unfulfilled or not fully fulfilled as of the reporting date, including expenses for the settlement of losses.

Footnote. Clause 5 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

The total values of insurance reserves under an insurance contract when calculating the RNP, RNU, RZNU and when calculating the RIN by insurance class, which have a negative value, take the value zero.

Footnote. Clause 6 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Chapter 4. Calculation of insurance reserves for the general insurance industry

The RNI is calculated separately for each insurance contract.
To calculate the RNP value, the proportion method is used.
RNP using the proportion method is determined by summing up unearned premiums calculated for each contract.

The unearned premium by the proportion method is determined for each contract as the product of the insurance premium under the contract by the ratio of the unexpired period of insurance protection on the reporting date (in days) to the period of validity of insurance protection (in days) from the date of commencement of insurance protection to the end of the validity of insurance protection:

SP – insurance premium;

T1 – the number of days during which insurance protection is valid from the date of entry into force of insurance protection until the end of validity of insurance protection under the insurance (reinsurance) contract (if the day of commencement of insurance protection occurs earlier than the day the insurance contract comes into force - the number of days from the date of entry into force of the insurance contract until the end of validity of insurance protection under the insurance (reinsurance) contract);

T2 – the number of days of validity of insurance protection that have expired from the date of commencement of validity of insurance protection to the date of calculation (inclusive) (if the day of commencement of validity of insurance protection occurs earlier than the day of entry into force of the insurance contract - the number of days of validity of insurance protection that have expired from the moment of entry into force of the insurance contract to the date of calculation (inclusive)).

When calculating prudential standards in accordance with resolution of the Board of the National Bank of the Republic of Kazakhstan dated December 26, 2016 No. 304 “On establishing standard values and methods for calculating prudential standards of an insurance (reinsurance) organization and insurance group and other mandatory compliance with norms and limits, requirements for shares (participatory interests in the authorized capital) of legal entities acquired by insurance (reinsurance) organizations, subsidiaries of insurance (reinsurance) organizations or insurance holding companies, a list of bonds of international financial organizations acquired by insurance holding companies, the minimum required rating for bonds acquired by insurance holding companies, and a list of rating agencies, as well as a list of financial instruments (except for shares and participation interests in the authorized capital) acquired by insurance (reinsurance) organizations", registered in the Register of State Registration of Normative Legal Acts under No. 14794 (hereinafter referred to as Resolution No. 304) and resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated February 17 2021 No. 32 "On the establishment of regulatory values and methods for calculating prudential standards of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident Islamic insurance (reinsurance) organization of the Republic of Kazakhstan and other mandatory norms and limits, including the procedure for the formation of assets of a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of an Islamic insurance (reinsurance) non-resident organization of the Republic of Kazakhstan, accepted as a reserve, and their minimum size", registered in the Register of State Registration of Normative Legal Acts under No. 22231 (hereinafter referred to as Resolution No. 32), the calculation of the RNP under the contract of compulsory insurance of civil liability of vehicle owners is carried out based on the amount of the insurance premium calculated in accordance with Article 19 of the Law of the Republic of Kazakhstan “On compulsory civil liability insurance of vehicle owners” and the coefficients established by the annex to the Rules for the calculation and application of the coefficient for the “bonus-malus” system for calculating the insurance premium for compulsory civil liability insurance of vehicle owners, approved resolution of the Board of the National Bank of the Republic of Kazakhstan dated May 30, 2016 No. 140 “On approval of the Rules for the calculation and application of the coefficient under the bonus-malus system for calculating the insurance premium for compulsory civil liability insurance of vehicle owners,” registered in the Register of State Registration of Regulatory Legal acts under No. 13928 (hereinafter referred to as the Rules for the “bonus-malus” system), without applying the conditions of paragraph 15 of the Rules for the “bonus-malus” system.

Footnote. Clause 9 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated December 27, 2024 No. 87 (shall be enforced three months after the day of its official publication).

IBNR calculation is carried out separately for each class of insurance. The total value of IBNR is determined by summing IBNR calculated for all classes of insurance.
Calculation of IBNR is carried out using the following actuarial methods:

the chain ladder method without adjustment for inflation in accordance with the Calculation of the reserve for occurred but unreported losses using the chain ladder method without adjustment for inflation in the form in accordance with Appendix 9 to the Requirements and adjusted for inflation in accordance with Calculation of the reserve for occurred but unreported losses using the chain ladder method, adjusted for inflation in the form in accordance with Appendix 10 to the Requirements.

For the purposes of the Requirements, the chain ladder method is understood as a method of allocating the insurer's obligations to make insurance payments for insured events that occurred in the reporting period or in periods preceding the reporting period.

In the chain ladder method, the distribution of the insurer's obligations is based on payments (paid losses) or incurred losses of the insurance (reinsurance) organization.

In the inflation-adjusted chain ladder method, payments (losses paid) or losses incurred are increased by the inflation rate;

the Bornhuetter-Ferguson method in accordance with the Calculation of the reserve for occurred but unreported losses by the Bornhuetter-Ferguson method in the form according to Appendix 11 to Requirements.

The Bornhuetter-Ferguson method is based on the chain ladder method, the distribution of liabilities for which is based on payments (paid losses) or incurred losses, and determining the expected value of future losses.

The expected value of future losses is equal to the product of the earned premium and the loss ratio, the size of which is not less than the average value of loss ratios for policies calculated for completed financial years preceding the periods of losses taken into account by the insurance (reinsurance) company when distributing liabilities in the form in accordance with Appendix 11 to the Requirements.

Footnote. Clause 11 as amended by the resolution of the Board of the National Bank of the Republic of Kazakhstan dated September 12, 2019 No. 157 (shall come into force ten calendar days after the day of its first official publication).

11-1. The loss ratio for policies is calculated as the ratio of the amount of losses incurred, including losses settlement expenses, under insurance (reinsurance) contracts that entered into force in the corresponding financial year to the earned insurance premiums under the specified insurance (reinsurance) contracts.

When calculating the loss ratio for policies, losses incurred, including loss adjustment expenses, and insurance premiums earned are taken into account for completed financial years up to the reporting date.

When calculating the loss ratio for policies used to calculate insurance reserves, the actuary, if necessary, adjusts the loss under an insurance (reinsurance) agreement that is large.

Footnote. Clause 11-1 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

In the case of distribution by the actuary of the insurer's obligations on the basis of losses incurred when calculating IBNR using actuarial methods Table of accumulated losses Calculation of the reserve for occurred but not reported losses using the chain ladder method without adjusting for inflation in the form according to Appendix 9 to The claims are constructed by summing the declared but unresolved losses and the accumulated amounts of payments (paid losses) at the end of each period of occurrence of losses, used to construct a triangle of accumulated losses, according to Table of accumulated losses based on incurred losses Distribution of insurance liabilities (reinsurance) organization based on losses incurred in accordance with Appendix 12 to the Requirements.

In case of distribution by the actuary of the insurer's obligations on the basis of incurred losses when calculating IBNR using actuarial methods, the Table of accumulated losses adjusted for inflation for past periods Calculation of the reserve for occurred but not reported losses using the chain ladder method adjusted for inflation in the form in accordance with Appendix 10 to the Requirements is constructed by summing the declared but unresolved losses and accumulated amounts of payments (paid losses) at the end of each loss period used to construct a triangle of accumulated losses, according to the Table of accumulated losses based on incurred losses. Distribution of liabilities of an insurance (reinsurance) company based on incurred losses in accordance with Appendix 12 to the Requirements.

If the actuary distributes the insurer's obligations on the basis of incurred losses when calculating IBNR using actuarial methods, the Table of accumulated losses Calculation of the reserve for occurred but not reported losses using the Bornhuetter-Ferguson method in the form according to Appendix 11 to the Requirements is constructed by summing the declared but unresolved losses and the accumulated amounts of payments (paid losses) at the end of each loss period used to construct a triangle of accumulated losses, according to the Table of accumulated losses based on incurred losses. Distribution of liabilities of an insurance (reinsurance) company based on incurred losses in accordance with Appendix 12 to the Requirements.

If at the reporting date the IBNR value implies a decrease of more than 30 (thirty) percent compared to the previous reporting date, the actuarial method specified in clause 11 of the Requirements, which provides for the largest IBNR amount, is used to calculate the IBNR.
IBNR for the class of compulsory insurance of an employee against accidents during the performance of his labor (official) duties consists of two parts and is determined by the following formula:

RPNNU = RPENU + RPNZU, where:

RPENU is calculated using actuarial methods specified in paragraph 11 of the Requirements. When an insurance (reinsurance) organization carries out activities in the class of compulsory insurance of an employee against accidents during the performance of labor (official) duties for less than 3 (three) years or there is insufficient data to calculate the RPENU using the methods specified in paragraph 11 of the Requirements, the RPENU is at least 5 (five) percent of the amount of the insurance premium under insurance (reinsurance) contracts and additional agreements to insurance (reinsurance) contracts for this class that came into force in the last twelve months preceding the calculation date.

When the actuary distributes the insurer's obligations on the basis of incurred losses when calculating RPENU using actuarial methods, the Table of accumulated losses Calculation of the reserve for occurred but not reported losses using the chain ladder method without adjusting for inflation in the form according to Appendix 9 to the Requirements is constructed by summation of declared but unresolved losses and accumulated amounts of payments (paid losses) at the end of each loss period used to construct a triangle of accumulated losses, according to the Table of accumulated losses based on incurred losses. Distribution of liabilities of an insurance (reinsurance) company based on incurred losses according to Appendix 12 to the Requirements.

When the actuary distributes the insurer's obligations on the basis of losses incurred when calculating RPENU using actuarial methods Table of accumulated losses adjusted for inflation for past periods Calculation of the reserve for occurred but not reported losses using the chain ladder method adjusted for inflation in the form according to Appendix 10 to the Requirements is constructed by summing the declared but unresolved losses and the accumulated amounts of payments (paid losses) at the end of each period of occurrence of losses used to construct a triangle of accumulated losses, according to the Table of accumulated losses based on incurred losses Distribution of insurance liabilities (reinsurance) organization based on losses incurred in accordance with Appendix 12 to the Requirements.

When the actuary distributes the insurer's obligations on the basis of losses incurred when calculating RPENU using actuarial methods Table of accumulated losses Calculation of the reserve for occurred but not reported losses using the Bornhuetter-Ferguson method in the form according to Appendix 11 to the Requirements is constructed by summing the declared but unresolved losses and the accumulated amounts of payments (paid losses) at the end of each period of occurrence of losses used to construct a triangle of accumulated losses, according to the Table of accumulated losses based on incurred losses Distribution of insurance liabilities (reinsurance) organization based on losses incurred in accordance with Appendix 12 to the Requirements;

RPNZU is calculated for beneficiaries for whom insurance payment was made in connection with establishing the degree of UPT and compensation for damage to persons who suffered damage as a result of the death of an employee in accordance with Article 940 of the Civil Code.

RPNZU is formed in order to assess the expected obligations associated with the extension (re-examination) of the degree of UPT and compensation for damage to persons who suffered damage as a result of the death of an employee in accordance with Article 940 of the Civil Code, accepted by the insurance (reinsurance) organization under insurance (reinsurance) contracts.

RPNZU is equal to the amount of projected payments associated with the extension (re-certification) of the UPT degree, determined individually for each beneficiary for whom the UPT degree has been established or for whom a repeated extension (re-certification) of the UPT degree is expected, and associated with compensation for damage to persons who suffered damage as a result of the death of an employee in accordance with Article 940 of the Civil Code.

The calculation of RPNZU is carried out in accordance with the Rules for calculating annuity payments under an annuity contract and on the requirements for an annuity contract and the permissible level of expenses of the insurer for conducting business under concluded annuity contracts, approved by resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Supervision of the Financial Market and financial organizations dated March 1, 2010 No. 28, registered in the Register of State Registration of Normative Legal Acts under No. 6156.

In order to assess the predicted payments for each beneficiary, the extension of the period for establishing the degree of UPT is carried out until the retirement age established by the Social Code of the Republic of Kazakhstan is reached, with a probability of 100 (one hundred) percent.

In order to assess projected payments, the RPNZU is formed for each person entitled to compensation for damage to persons who suffered damage as a result of the death of an employee in accordance with Article 940 of the Civil Code, with a probability of making payments of 100 (one hundred) percent.

If the insurance (reinsurance) organization does not receive an application for concluding an annuity agreement in connection with the repeated extension (re-examination) of the beneficiary’s UPT degree within 2 (two) years after the expiration of the annuity agreement, and the insurance (reinsurance) organization:

does not have information about the extension (re-certification) of the beneficiary’s UPT degree after the expiration of the annuity agreement, then the actuary, if necessary, excludes the given amount of projected payments for the beneficiary from the calculation of the RPNZU;
has information about the extension (re-certification) of the beneficiary’s UPT degree after the expiration of the annuity contract, then the actuary evaluates the projected payments taking into account the probability of the beneficiary’s repeated application, calculated by the actuary based on his professional judgment.

When accepting and (or) transferring to reinsurance obligations under insurance contracts concluded in accordance with the Law of the Republic of Kazakhstan “On compulsory insurance of an employee against accidents in the performance of labor (official) duties” (hereinafter referred to as the Law on compulsory insurance of an employee against accidents), the reinsurer presents the parameters of the reserve the basis used in calculating the RPNZU, to the reinsurer resident of the Republic of Kazakhstan by indicating such parameters in the reinsurance agreement and (or) the agreement concluded through intermediaries.

The values of the parameters of the reserve basis used by the reinsurer-resident of the Republic of Kazakhstan when calculating the RPNZU coincide with the values of the parameters of the reserve basis used by the reinsurer when calculating the RPNZU, except for the case when the reserve basis of the reinsurer-resident of the Republic of Kazakhstan is more conservative than the reserve basis of the reinsurer.

Footnote. Clause 14 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated October 21, 2024 No. 83 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

In order to equalize factors for the development of losses when calculating RNR and (or) RPENU using actuarial methods, the actuary, if necessary, adjusts the loss under an insurance (reinsurance) agreement that is large.

Footnote. Clause 15 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Under voluntary insurance contracts, the object of insurance of which is the property interest of an employee whose life and health was harmed as a result of an accident, which led to the establishment of the degree of UTI, the actuary increases the INR by the amount of the obligations of the insurance (reinsurance) company related to the extension (re-certification) of the degree of disability, deterioration of the health of the beneficiary (hereinafter referred to as additional obligations).

The total amount of additional obligations is equal to the amount of projected payments, determined individually for each beneficiary for whom the degree of UPT has been established or for whom a repeated extension (re-examination) of the degree of UPT is expected, multiplied by an adjustment factor calculated on the basis of statistical data of the insurance (reinsurance) organization using the probability of prolongation for a similar group of losses.

The actuary makes a decision on determining the size of the RNI separately for each class of insurance and the RPE for the class of compulsory insurance of an employee against accidents during the performance of his labor (official) duties on the basis of actuarial calculation methods provided for in clause 11 of the Requirements.
If an insurance (reinsurance) organization carries out activities in the insurance class, with the exception of compulsory insurance of an employee against accidents during the performance of his labor (official) duties, for less than 3 (three) years or there is insufficient data for calculating IBNR using actuarial methods specified in paragraph 11 of the Requirements, IBNR is at least 5 (five) percent of the amount of the insurance premium under insurance (reinsurance) contracts and additional agreements to insurance (reinsurance) contracts that entered into force in the last 12 (twelve) months preceding the settlement date.

Footnote. Clause 18 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated 02.20.2023 No. 3 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

For the class of mortgage insurance, the IBNR value is at least 60 (sixty) percent of the amount of the insurance premium under insurance (reinsurance) contracts and additional agreements to insurance (reinsurance) contracts that entered into force over the last 12 (twelve) months preceding the date of calculation.

Footnote. Clause 19 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated 02/20/2023 No. 3 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

A declared but unresolved loss is reflected in the loss report from the date of application by the policyholder (insured, beneficiary) about the occurrence of an insured event and (or) an insured event and (or) about making an insurance payment in writing or in the manner prescribed by the laws of the Republic of Kazakhstan on compulsory types of insurance and (or) the contract.

The reinsurer (assignor) notifies the reinsurer of the occurrence of an insured event and (or) insured event within 3 (three) business days from the date the reinsured (assignor) receives such an application, unless otherwise provided by the reinsurance agreement.

Footnote. Clause 20 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated January 26, 2021 No. 5 (shall be enforced after the day of its first official publication).

RZNU is formed separately for each declared but unresolved loss, from the date of receipt of the application of the policyholder (the insured, the beneficiary) about the occurrence of an insured event and (or) an insured event and (or) about the implementation of an insurance payment, depending on which date comes earlier, until the date of the insurance payment or a decision to refuse to make an insurance payment by the insurer, or a written refusal of the policyholder (the insured, beneficiary) in receiving insurance payment, including consideration of an application for the occurrence of an insured event or insured event, depending on which date comes first.

If there are no grounds for the formation of RZNU for a declared but unresolved loss, established by paragraph 25 of the Requirements, the insurance (reinsurance) organization writes off RZNU after 3 (three) years from the date of receipt of the application of the policyholder (insured, beneficiary) about the occurrence of an insured event and (or) insured event and (or) about making an insurance payment.

Footnote. Clause 21 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated October 21, 2024 No. 83 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

21-1. RZNU for a declared but unsettled loss under a life insurance contract, under which a decision was made to make an insurance payment within a period of more than 3 (three) years from the date of such a decision and (or) from the date of receipt of an application from the policyholder (insured, beneficiary) about the occurrence of an insured event and (or) an insured event and (or) about making an insurance payment, depending on which date comes earlier, is formed before the date of the insurance payment in in full.

Footnote. The requirements are supplemented by clause 21-1 in accordance with the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated October 21, 2024 No. 83 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

RZNU is formed in the amount of the declared loss.

If the policyholder (insured, beneficiary) and the insurance (reinsurance) company do not have sufficient information about the amount of loss, the RZNU is formed in an amount sufficient for insurance payment, but not less than the average value of paid claims made for a similar group of insured events for the previous financial year or the previous 2 (two) financial years, depending on which value is greater.

In the absence of sufficient information about paid claims made for a similar group of insurance events for the previous financial year or the previous 2 (two) financial years, the RZNU is formed in the amount of not less than the average market value of paid claims made for the class of insurance for the previous financial year or the previous 2 (two) financial years, depending on which value is greater.

The actuary, if necessary, makes an adjustment to the loss taken into account in the calculation of the average (market average) value of paid claims, which is large, the justification for which is provided by the actuary in accordance with paragraph 4 of the Requirements.

The amounts of RZNL, formed due to the lack of sufficient information about the amount of loss, are recalculated at the end of each financial year based on their sizes, calculated in accordance with parts two and three of this paragraph.

If there are documents confirming the amount of the loss, or after the insurance (reinsurance) company receives the specified documents, the RZNU is formed in the amount of the declared and documented loss.

The total amount of the RZNU is determined by summing the RZNU formed for all declared but unresolved losses.

Footnote. Clause 22 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated January 26, 2021 No. 5 (shall be enforced after the day of its first official publication).

The amount of the RZNU is increased by the amount of estimated expenses directly related to the consideration and settlement of the amount of insurance payments for the stated claims, calculated by the actuary.
The calculated value of the RZNU, if necessary, is reduced by the amount of overdue debt of the policyholder (reinsurer) for payment of the insurance premium (the next insurance premium) of the insurance (reinsurance) organization on the date of calculation (including the amount of debt under the annuity insurance agreement).

Footnote. Clause 24 as amended by the resolution of the Board of the National Bank of the Republic of Kazakhstan dated September 12, 2019 No. 157 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

If legal proceedings have been initiated against an insurance (reinsurance) company on the issue of making insurance payments, the RZNU is formed in the manner established in clause 22 of the Requirements, in the period from the date of commencement of legal proceedings until the date the court decision enters into legal force on the issue of making insurance payments, but no earlier than the date of insurance payment.
The actuary increases the amount of insurance reserves by the amount of obligations of the insurance (reinsurance) company associated with the occurrence on the date of calculation of additional risks under concluded insurance (reinsurance) contracts that were not provided for when forming insurance reserves.

Chapter 5. Calculation of insurance reserves for the life insurance industry

The calculation of insurance reserves of an insurance (reinsurance) organization carrying out insurance activities in the life insurance industry is carried out using actuarial methods.
The calculation of insurance reserves of an insurance (reinsurance) organization carrying out insurance activities in the “life insurance” industry is carried out by the actuary separately for each insurance (reinsurance) contract, with the exception of insurance contracts that provide for the condition of the policyholder’s participation in investments, as well as separately for the types of contracts:

non-cumulative life insurance (reinsurance);
accumulative life insurance (reinsurance);
annuities for which the start date for insurance payments occurs after the calculation date;
annuities for which the start date for insurance payments occurred before the calculation date.

The calculation of insurance reserves of an insurance (reinsurance) organization carrying out insurance activities in the “life insurance” industry, by class of accident insurance, by class of health insurance, by class of compulsory tourist insurance and by class of compulsory insurance of an employee against accidents during the performance of his labor (official) duties, is carried out by an actuary in accordance with paragraphs 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 and 26 Requirements.

Footnote. Clause 29 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated January 26, 2021 No. 5 (shall be enforced after the day of its first official publication).

The calculation of insurance reserves is carried out on the basis of a reserve basis, taking into account the terms of insurance contracts.
The reserve basis is established taking into account differences in the terms of the insurance (reinsurance) contract, in particular depending on the list of insured events, validity periods, the procedure and timing of payment of insurance premiums, the timing of insurance payments, as well as other factors that objectively affect the degree of risk accepted for insurance.
The reserve basis includes the following parameters:

effective annual interest rate;
tables of mortality, morbidity and disability used by the insurance (reinsurance) organization to calculate insurance reserves;
the absolute value or share of the insurer’s future expenses for servicing insurance contracts (future expenses for conducting business), as well as the share of expenses for making insurance payments as a percentage of the insured amount (hereinafter referred to as expense indicators);
indexation rates of insurance payments.

The values of the reserve base parameters coincide with the values of the tariff base parameters, with the exception of the case when the reserve base is more conservative than the tariff base.

In the case where the reserve basis is more conservative than the tariff base:

the effective annual interest rate of the reserve basis is less than the effective annual interest rate of the tariff base;

the coefficients of the tables of mortality, morbidity, disability under life insurance contracts of the reserve basis exceed the coefficients of the corresponding tables of the tariff base for all ages;

the coefficients of the tables of mortality, morbidity, and disability under annuity insurance contracts of the reserve basis are less than the coefficients of the corresponding tables of the tariff base for all ages;

the rates of administrative expenses of the reserve base exceed the corresponding rates of the tariff base;

the reserve base indexation rate is higher than the tariff base indexation rate.

This paragraph does not apply to:

annuity contracts concluded in accordance with the Law on Compulsory Accident Insurance of Employees before January 1, 2011;

other contracts in the “life insurance” industry, concluded before January 1, 2015.

This paragraph in terms of the effective annual interest rate does not apply to life insurance contracts within the framework of the state educational savings system.

Footnote. Clause 33 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

When calculating insurance reserves, the actuary for all existing contracts, with the exception of life insurance contracts within the framework of the state educational savings system, uses an effective annual interest rate of no more than:

4 (four) percent if the insurance currency is foreign currency;
6 (six) percent, if the insurance currency is the national currency, for contracts concluded before January 1, 2023;
8 (eight) percent, if the insurance currency is the national currency, for contracts concluded after January 1, 2023.

The effective annual interest rate used to calculate insurance reserves for life insurance contracts within the framework of the state educational savings system is equal to the effective annual interest rate of the tariff base, increased by no more than 2 (two) percent, and does not exceed 10 (ten) percent.

When using a conservative approach to calculate insurance reserves for life insurance contracts within the framework of the state educational savings system, the effective annual interest rate of the reserve base is lower than the tariff base.

Footnote. Clause 34 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

35-1. When calculating insurance reserves under annuity insurance contracts concluded in accordance with the Law on compulsory insurance of an employee against accidents, the indexation rate is applied in the amount of the projected inflation rate, which is determined by the actuary of the insurance organization, licensed to carry out actuarial activities in the insurance market, based on statistical data on inflation.

The indexation rate is approved by the board of the insurance organization on an annual basis. If necessary, the board of the insurance organization revises the indexation rate based on the actuary’s opinion, but no more than twice a year.

For the purposes of applying the requirements of this paragraph to a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, the board of an insurance organization is understood as the corresponding management body of a non-resident insurance organization of the Republic of Kazakhstan.

Footnote. The requirements are supplemented by clause 35-1 in accordance with the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated January 26, 2021 No. 5 (shall be enforced after the day of its first official publication).

The selection of mortality, morbidity, and disability tables is made taking into account the characteristics of the insurance risk under the insurance contract, based on the characteristics of the insured and (or) the policyholder.

When calculating RNU under pension annuity contracts:

concluded before July 1, 2017, indicators that do not exceed mortality rates are used to calculate insurance payments under a pension annuity agreement in accordance with Appendix 13 to the Requirements;

concluded after July 1, 2017, indicators are used that do not exceed mortality rates for calculating insurance payments under a pension annuity contract, specified in Appendix 2 to the Methodology for calculating insurance premiums and insurance payments under a pension annuity contract, approved by a resolution of the Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market dated June 7, 2023 No. 45 “On approval of a standard pension annuity agreement, establishing a Methodology for calculating the insurance premium and insurance payment from an insurance organization under a pension annuity agreement, the permissible level of expenses of an insurance organization for conducting business under concluded pension annuity agreements, as well as the indexation rate of insurance payment,” registered in the Register of State Registration of Normative Legal Acts under No. 32831.

Footnote. Clause 36 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated October 21, 2024 No. 83 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

RNL for life insurance (reinsurance) contracts is calculated as the sum of reserves for unincurred losses for all life insurance (reinsurance) contracts valid on the date of calculation.

38. The RNU under a separate life insurance (reinsurance) contract, except for an insurance contract providing for the condition of the policyholder's participation in investments, is equal to the maximum value of the two following values:

RNU 1 = PosV + PosRV + PosOR - PosSV,

Where:

PosV – the present expected value of insurance payments provided for by the terms of the insurance (reinsurance) agreement;

PosRV – the present expected value of the expenses of an insurance (reinsurance) company directly related to the consideration, settlement, and determination of the amount of insurance payments;

PosOR – the present expected value of the operating expenses of the insurance (reinsurance) organization associated with the conduct of the business;

PosIV - the present expected value of insurance premiums (for a one-time payment - insurance premium), which are subject to receipt by the insurance (reinsurance) organization after the calculation date;

RNU 2 = PosV - PosSNV,

Where:

PosV – the present expected value of insurance payments provided for by the terms of the insurance (reinsurance) contract exclusively upon the occurrence of an insured event (without taking into account the insurance payment made after the expiration of the period established by the insurance contract);

PoSNV – the present expected value of net insurance premiums (with a one-time payment - net insurance premium), which are to be received by the insurance (reinsurance) organization after the settlement date for its acceptance of obligations solely to make insurance payments related to the occurrence of an insured event (without taking into account the insurance payment made after the expiration of the period established by the insurance contract).

For the purpose of calculating the settlement amount under life insurance contracts within the framework of the state educational savings system, for which an insured event occurred under subparagraphs 1) or 3) paragraph 9 of Article 11-1 of the Law of the Republic of Kazakhstan “On the State Educational Savings System”, RNU is equal to the current value of the following value:

Where

CC – sum insured;

CBacc – the amount of insurance payments made at the time of calculating the estimated amount provided for by the terms of the insurance contract;

СВall – the total amount of periodic insurance payments as of the date of calculation of the settlement amount.

Footnote. Clause 38 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated October 21, 2024 No. 83 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

38-1. The RNU under a separate life insurance contract within the framework of the state educational savings system, calculated in accordance with paragraph 38 of the Requirements, increases by the amount of the accrued state premium, taking into account the income from its investment.

Footnote. The requirements are supplemented by clause 38-1 in accordance with the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 23, 2022 No. 102 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

When calculating the present expected value, the parameters of the reserve basis specified in clause 32 of the Requirements are used.
RNL for annuity contracts is calculated as the sum of reserves for unincurred losses for all annuity contracts valid on the date of calculation.
RNU under a separate annuity contract is equal to the following value:

RNU = PosV + PosOR - PosSV,

Where:

PosV – the present expected value of insurance payments provided for by the terms of the annuity agreement;

PosOR – the present expected cost of operating expenses of an insurance (reinsurance) organization associated with conducting business under an annuity agreement;

PosIV - the present expected value of insurance premiums (in case of a one-time payment - insurance premium), which are subject to receipt by the insurance (reinsurance) organization after the calculation date. For an annuity contract for which the start date for insurance payments occurred before the calculation date, PosIV is equal to zero.

When increasing the amount of regular insurance payments under annuity contracts, the RNU is determined:

during the period of insurance payments - in accordance with paragraph 41 of the Requirements. The calculation of the present expected cost of insurance payments is carried out taking into account the increase in the amount of insurance payments;

during the accumulation period - in accordance with paragraph 41 of the Requirements, taking into account the increase in the amount of insurance payments under the annuity agreement due to additional income of the insurance (reinsurance) organization.

When calculating the present expected value, the parameters of the reserve basis specified in paragraph 32 of the Requirements are used.
IBNR under non-cumulative life insurance (reinsurance) contracts is calculated by the actuary in accordance with paragraphs 10, 11, 12, 13, 14, 17, 18, 19 and 26 of the Requirements.
IBNR under annuity contracts, as well as under accumulative life insurance (reinsurance) contracts is equal to zero.
RZNU under life insurance (reinsurance) contracts is calculated by the actuary in accordance with paragraphs 20, 21, 22, 23, 24 and 25 of the Requirements.
RZNU under annuity contracts is equal to zero.

Paragraph 1. Industry "general insurance"

The reinsurer’s share in the RIR is calculated separately for each insurance (reinsurance) agreement.
Under proportional reinsurance agreements, the reinsurer’s share in the RNI is determined for each insurance (reinsurance) agreement as the product of the coefficient and the RNI for the insurance (reinsurance) agreement as of the reporting date.

The reinsurer's share in RNP = bRE*RNP, where:

bRE coefficient is equal to the ratio of the insurance premium under the reinsurance agreement to the insurance premium under the insurance agreement.

When calculating prudential standards in accordance with Resolution No. 304 and Resolution No. 32 in the bRE coefficient, the insurance premium under the contract reinsurance is taken into account, with the exception of commission fees to the assignor, insurance broker or branch of a non-resident insurance broker of the Republic of Kazakhstan under a reinsurance (insurance) agreement and indemnities, payments to insurance intermediaries and other persons from the reinsurer not related to insurance protection for risks transferred to reinsurance.

Footnote. Clause 49 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated December 27, 2024 No. 87 (shall be enforced three months after the day of its official publication).

49-1. When calculating prudential standards in accordance with Resolution No. 304 and Resolution No. 32, the reinsurer’s share in the RNP under the contract reinsurance, the terms of which provide for a minimum deposit premium (or deposit premium) (hereinafter referred to as the MDP), subject to recalculation (adjustment) upon expiration of the reinsurance agreement at the appropriate recalculation rate, is determined based on the amount of the insurance premium (not being the MDP) accrued to the reinsurer at the specified recalculation rate, or equal to 0 (zero).

When calculating prudential standards in accordance with Resolution No. 304 and Resolution No. 32, the reinsurer’s share in the RNP under the contract reinsurance, the terms of which provide for MDP, which is not subject to recalculation (adjustment) upon expiration of the reinsurance agreement, and (or) the condition that in case of early termination of the reinsurance agreement (coverage), part of the premium is not subject to return, equal to 0 (zero) for the amount not subject to return on the reporting date.

Footnote. Clause 49-1 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated December 27, 2024 No. 87 (shall be enforced three months after the day of its official publication).

The reinsurer’s share in the IBNR is determined by the actuary separately for each class of insurance as the difference between the IBNR taking into account the reinsurer’s share and the IBNR excluding the reinsurer’s share, calculated in accordance with paragraphs 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 26 of the Requirements.

The reinsurer's share in the cost of projected payments, calculated in accordance with clause 14 of the Requirements, is determined by the actuary separately for each beneficiary in accordance with the terms of the reinsurance agreement.

To calculate IBNR without taking into account the share of the reinsurer, the calculation method selected when calculating IBNR taking into account the share of the reinsurer is used using the loss development coefficients used in calculating IBNR taking into account the share of the reinsurer.

In the case of calculating IBNR in accordance with paragraph 18 of the Requirements, the reinsurer's share in IBNR is equal to the product of the percentage used in calculating IBNR taking into account the share of the reinsurer in accordance with paragraph 18 of the Requirements, and the reinsurance premium for insurance contracts and additional agreements to insurance contracts transferred to reinsurance and entered into force in the last 12 (twelve) months preceding settlement date.

Footnote. Clause 51 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated 02.20.2023 No. 3 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

The reinsurer’s share in the RZNU is calculated based on the amount of losses that are subject to compensation from the reinsurance organization, according to the terms of the reinsurance agreement.
Under reinsurance agreements (additional agreements), the reinsurer’s share in insurance reserves is 0 (zero), except in cases where the insurance (reinsurance) company has confirmation from the reinsurer (reinsurers) in writing that he (them) accepts risks for reinsurance (acceptance) indicating all the conditions of reinsurance (including the size of the insurance premium accepted by the reinsurer, obligations under the contract reinsurance, liability limit, assignor commission, insurance broker commission and (or) branch of a non-resident insurance broker of the Republic of Kazakhstan).

As a confirmation of the reinsurer (reinsurers) that he/she accepts risks for reinsurance (acceptance) before receiving the reinsurance contract, a reinsurance cover note or a reinsurance slip with a signature sheet that meets the requirements of the regulatory legal act of the authorized body defining the conditions and procedure for carrying out the activities of an insurance broker and a branch of a non-resident insurance broker of the Republic of Kazakhstan in accordance with paragraph 9 of Article 17 of the Law is also accepted.

If the insurance (reinsurance) organization has confirmation of the reinsurer (reinsurers) provided for in this paragraph, the reinsurer’s share in the following insurance reserves, if necessary, is formed in accordance with the following conditions:

in RNP:

the amount of the insurance premium under the facultative reinsurance agreement at the time of transfer of the insurance risk does not exceed the amount of the premium under the insurance agreement, except in the case of an excess of the fulfillment of the obligation under the reinsurance agreement as a result of changes in the exchange rate;

the reinsurance agreement does not provide for the transfer of less than 10 (ten) percent of the volume of liability and more than 50 (fifty) percent of the insurance premium;

the reinsurance agreement does not contain a condition on the receipt by an affiliate of the reinsurer and (or) an affiliate of the policyholder, with the exception of the reinsurer and the insured person, of part of the insurance premium, profit and (or) the positive difference between the income and expenses of the reinsurer under the agreement or group of reinsurance agreements;

in insurance reserves:

as of the reporting date, under the facultative reinsurance agreement, there are no receivables related to the reinsurer’s reimbursement of the insurance payment for an insured event that is overdue for a period of more than 90 (ninety) days from the date of issuing a demand to the reinsurer, insurance broker or branch of a non-resident insurance broker of the Republic of Kazakhstan for reimbursement of the insurance payment by the reinsurer;

the reinsurer is not registered in offshore zones;

the reinsurer as of the reporting date is not included in the register of prohibited non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan.

Footnote. Clause 53 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated January 26, 2021 No. 5 (shall be enforced after the day of its first official publication).

When calculating prudential standards in accordance with resolution No. 304 and resolution No. 32, the reinsurer’s share in insurance reserves under reinsurance contracts providing for the transfer of all or part of insurance risks to reinsurance under compulsory insurance contracts for civil liability of vehicle owners is 0 (zero).

The requirements of paragraph 53 of the Requirements do not apply to reinsurance contracts providing for the transfer of catastrophic risks.

Footnote. Clause 54 - as amended by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated December 27, 2024 No. 87 (shall be enforced three months after the day of its official publication).

Paragraph 2. Life insurance industry

The calculation of the reinsurer’s share in insurance reserves under non-cumulative life insurance (reinsurance) contracts is carried out in accordance with clause 48, 49, 50, 51, 52, 53 and 54 Requirements.
The reinsurer’s share in the RNU under accumulative life insurance (reinsurance) contracts and annuity insurance contracts is determined based on the share of liability under the insurance contract transferred to reinsurance, and is calculated in accordance with clause 37, 38, 39 and 40 Requirements or based on the amount of the insurance premium (insurance premiums) under the reinsurance agreement.
The reinsurer’s share in RZNU under accumulative life insurance (reinsurance) contracts is determined in accordance with clause 52 of the Requirements.

Appendix 1 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Log book of existing insurance (reinsurance) contracts and contracts transferred to reinsurance for the “general insurance” industry

Footnote. Appendix 1 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 2 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Log of losses (except for insurance payments made)

Footnote. Appendix 2 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 3 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Insurance payments logbook

Footnote. Appendix 3 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 4 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Journal of accounting of existing insurance (reinsurance) contracts and contracts transferred to reinsurance for the “life insurance” industry

Footnote. Appendix 4 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 5 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Journal of accounting of existing pension annuity contracts and other types of annuity insurance

Footnote. Appendix 5 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 6 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Journal of accounting of existing annuity contracts concluded in accordance with the Law of the Republic of Kazakhstan dated February 7, 2005 "On compulsory insurance of an employee against accidents during the performance of his labor (official) duties"

Footnote. Appendix 6 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 7 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Journal of accounting of insurance (reinsurance) contracts and additional agreements to insurance (reinsurance) contracts that entered into force over the last 12 (twelve) months

Footnote. Appendix 7 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 8 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Journal of the cost of projected payments

Footnote. Appendix 8 is excluded by the resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated March 26, 2020 No. 23 (shall be enforced upon the expiration of ten calendar days after the day of its first official publication).

Appendix 9 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Calculation of the reserve for occurred but unreported losses using the chain ladder method without adjusting for inflation

Reporting period: as of "_" "____________" 20 years

Form

Table of losses as of the reporting date by _________________________ insurance class

The table of losses is formed on the basis of __________________________ losses (paid, incurred)

Period of occurrence of insured events (i)

Losses by period (j)

Periodicity

...

n-2

n-1

X (1,1)

X (1,2)

X (1, n-2)

X (1, n-1)

X (1, n)

X (2.1)

X (2,2)

X (2, n-2)

X (2, n-1)

X (3.1)

X (3.2)

...

X (3, n-2)

...

n-1

X(n-1,1)

X (n-1,2)

X(n,1)

Note:

X (i,j) - payments (paid losses) or incurred losses, at the end of the j-th period, for insured events that occurred in the i-th period;

n is the number of periods for which payment data is considered;

the Table of Losses as of the reporting date reflects payments (paid losses) or incurred losses, grouped by periods of occurrence of insured events.

Table of accumulated losses _________________________ insurance class

Period of occurrence of insured events (i)

Accumulated losses (j)

...

n-2

n-1

S(1,1)=X (1,1)

S(1,2) =X (1,1) + X (1,2)

...

S(1,n-2) =X (1,1) + X (1,2)+… + X (1,n-2)

S(1,n-1) = X (1,1) + X (1,2)+… + X (1,n-2) + X (1,n-1)

S(1,n) =X (1,1) + X (1,2)+… + X (1,n)

S(2,1)=X(2,1)

S(2,2) =X (2,1) + X (2,2)

...

S(2,n-2) =X (2,1) + X (2,2)+… + X (2,n-2)

S(2,n-1) =Х (2,1) + Х (2,2)+… + Х (2,n-2) + Х (2,n-1)

S(3,1)=X(3,1)

S(3,2)=X (3,1) + X (3,2)

...

S(3,n-2) =Х (3,1) + Х(3,2)+… + Х (3,n-2)

...

n-1

S(n-1,1)=Х (n-1,1)

S(n-1,2)= X (n-1,1) + X (n-1,2)

S(n,1)=X (n,1)

Note: The Table of Accumulated Losses indicates the total amounts of payments (paid losses) or incurred losses, grouped by periods of occurrence of insured events.

Table of loss development coefficients g(j) _________________________________

Loss development method (arithmetic average, average for n-periods, average value)

Loss period (i)

Loss development factors (j)

...

n-2

n-1

...

n-1

Loss development coefficients g(j)

g(j)

...

n-2

n-1

arithmetic mean

average for n-periods

average value

Note: in the Table of Loss Development Factors, loss development factors F(i,j) are determined, corresponding to the relative increase in the total amount of losses from one payment period to the next, according to the following formula:

Loss development factor = F(i,j)= S (i,j+1)/S (i,j).

Loss development factors g(j) are calculated as the average value of loss development factors over the periods of loss occurrence.

Table of projected accumulated losses by ______________________ insurance class

Period of occurrence of insured events (i)

Projected accumulation of losses

...

n-2

n-1

UL(2,n) = S(2,n-1) * g(n-1)

...

n-1

...

S(n-1,2) * g(2) * … * g(n-3)

S(n-1,2) * g(2) * … * g(n-2)

UL(n-1,n) = S(n-1,2) * g(2) * … * g(n-1)

S(n,1) * g(1)

...

S(n,1) * g(1) * g(2) * … * g(n-3)

S(n,1) * g(1) * g(2) * … * g(n-2)

UL(n,n) = S(n,1) * g(1) * g(2) * … * g(n-1)

Note: The Projected Cumulative Loss Table identifies the expected amount of payments or incurred losses in each period.

The expected value of payments or incurred losses is calculated as the product of accumulated payments or incurred losses S (i,j-1) in the period of occurrence of losses i from the Table of accumulated losses, and the Table of loss development coefficients g(j).

Loss reserve table for _________________________

insurance class

Period of occurrence of insured events (i)

Projected accumulation of losses

Loss reserve by period

...

n-2

n-1

UL(2,n) = S(2,n-1) * g(n-1)

UL(2,n)-S(2,n-1)

...

n-1

...

S(n-1,2) * g(2) * … * g(n-3)

S(n-1,2) * g(2) * … * g(n-2)

UL(n-1,n) = S(n-1,2) * g(2) * … * g(n-1)

UL(n-1,n)-S(n-1,2)

S(n,1) * g(1)

...

S(n,1) * g(1) * g(2) * … * g(n-3)

S(n,1) * g(1) * g(2) * … * g(n-2)

UL(n,n) = S(n,1) * g(1) * g(2) * … * g(n-1)

UL(n, n)-S(n,1)

Table of reserve for occurred but unreported losses by ____________________ insurance class

Period of occurrence of insured events (i)

Loss reserve by period

Claimed but not settled losses

Occurred but unreported losses

...

n-1

Total

Note:

The Table of the reserve for occurred but unreported losses indicates:

in the column “Loss reserve by periods” - the values of loss reserves in the corresponding periods;

in the column “Declared but not settled losses” - the amount of declared losses in the relevant periods;

in the column “Occurred but not reported losses” - the difference between the columns “Reserve for losses by period” and “Reported but not settled losses” in the corresponding period. In case of a negative difference, the value 0 (zero) is taken in the column “Occurred but not reported losses”;

if the calculation is based on payments, then IBNR is the amount of incurred but unreported losses indicated in column 3 of the Table of the reserve of occurred but unreported losses, if the calculation is based on incurred losses, then IBNR is the amount of the loss reserve by period.

Appendix 10 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Calculation of the reserve for incurred but unreported losses using the chain ladder method adjusted for inflation

Reporting period: as of "_" "____________" 20 years

Form

Table of losses as of the reporting date by ______________________ insurance class

The table of losses is formed on the basis of __________________________ losses (paid, incurred)

Period of occurrence of insured events (i)

Losses by period (j)

Periodicity

...

n-2

n-1

...

n-1

Note: the Table of Losses as of the reporting date reflects payments (paid losses) or incurred losses, grouped by periods of occurrence of insured events.

Table of information on inflation for each past period

Periods

Inflation over the past period (in percent)

...

n-1

Note: the Table of Information on Inflation for each past period indicates the accumulated values of official inflation values for the period of occurrence of insured events.

Table of losses adjusted for inflation for past periods for ________________

insurance class

Period of occurrence of insured events (i)

Loss by period adjusted for historical inflation (j)

...

n-2

n-1

...

n-1

Table of accumulated losses adjusted for inflation for past periods for _________________

insurance class

Period of occurrence of insured events (i)

Cumulative losses adjusted for historical inflation (j)

...

n-2

n-1

...

n-1

Table of loss development coefficients g(j)

loss development method (arithmetic average, average for n-periods, average value)

Period of occurrence of insured events (i)

Loss development factors (j)

...

n-2

n-1

...

n-1

Loss development coefficients g(j)

g(j)

...

n-2

n-1

arithmetic mean

average for n-periods

average value

Table of projected accumulated losses adjusted for inflation for past periods for _____________________

insurance class

Period of occurrence of insured events (i)

Projected historical inflation-adjusted loss accumulation

...

n-2

n-1

...

n-1

...

Loss reserve table adjusted for inflation for past periods for _______________

insurance class

Period of occurrence of insured events (i)

Projected historical inflation-adjusted loss accumulation

Loss reserve by period

...

n-2

n-1

...

n-1

...

Loss reserve adjusted for historical inflation

Table of reserve for occurred but unreported losses for __________________

insurance class

Period of occurrence of insured events (i)

Loss reserve by period

Claimed but not settled losses

Occurred but unreported losses

...

n-1

Total

Note: if in the Table of the reserve for occurred but undeclared losses the calculation is based on payments, then IBNR is the amount of the occurred but undeclared losses indicated in column 3 of the Table of the reserve of occurred but undeclared losses, if the calculation is based on incurred losses, then IBNR is the amount of the reserve for losses for the periods specified in column 1 of the Table of the reserve of occurred but undeclared losses;

the column “Occurred but not reported losses” indicates the difference between the columns “Reserve for losses by period” and “Reported but not settled losses” in the corresponding period. In case of a negative difference, the value 0 (zero) is taken in the “Occurred but unreported losses” column.

Appendix 11 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Footnote. Appendix 11 as amended by the resolution of the Board of the National Bank of the Republic of Kazakhstan dated September 12, 2019 No. 157 (shall be brought into force ten calendar days after the day of its first official publication).

Calculation of the reserve for occurred but unreported losses using the Bornhuetter-Ferguson method

Reporting period: as of "_" "______" 20 years

Form

Table of losses as of the reporting date for _______________________

insurance class

The table of losses is formed on the basis of __________________________ losses

(paid, incurred)

Period of occurrence of insured events (i)

Losses by period (j)

Periodicity

...

n-2

n-1

X (1,1)

X (1,2)

X (1, n-2)

X (1, n-1)

X (1, n)

X (2.1)

X (2,2)

X (2, n-2)

X (2, n-1)

...

n-1

X(n-1,1)

X (n-1,2)

X(n,1)

Note:

X (i,j) - payments (paid losses) or incurred losses, at the end of the j-th period, for insured events that occurred in the i-th period;

n is the number of periods for which loss data is considered;

the Table of Losses as of the reporting date reflects payments (paid losses) or incurred losses, grouped by periods of occurrence of insured events.

Table of accumulated losses for _______________________

insurance class

Period of occurrence of insured events (i)

Accumulated losses (j)

...

n-2

n-1

S(1,1)=X (1,1)

S(1,2) =(X (1,1) + X (1,2)

...

S(1,n-2) =(X (1,1) + X (1,2)+… + X (1,n-2)

S(1,n-1) =( X (1,1) + X (1,2)+… + X (1,n-2) + X (1,n-1)

S(1,n) =X (1,1) + X (1,2)+… + X (1,n)

S(2,1)=X(2,1)

S(2,2) =X (2,1) + X (2,2)

...

S(2,n-2) =(X (2,1) + X (2,2)+… + X (2,n-2)

S(2,n-1) =Х (2,1) + Х (2,2)+… + Х (2,n-2) + Х (2,n-1)

S(3,1)=X(3,1)

S(3,2)= X (3,1) + X (3,2)

...

S(3,n-2) =(X (3,1) + X(3,2)+… + X (3,n-2)

...

n-1

S(n-1,1)=Х (n-1,1)

S(n-1,2)= X (n-1,1) + X (n-1,2)

S(n,1)=X (n,1)

Note: The Accumulated Loss Table indicates the total payments (paid losses) or incurred losses, grouped by periods of occurrence of insured events.

Table of loss development coefficients g(j)

loss development method (arithmetic average, average for n-periods, average value)

Period of occurrence of losses (i)

Loss development factors (j)

...

n-2

n-1

...

n-1

Loss development coefficients g(j)

g(j)

...

n-2

n-1

arithmetic mean

average for n-periods

average value

Note: in the Table of Loss Development Factors, loss development factors F(i,j) are determined, corresponding to the relative increase in the total amount of declared losses from one payment period to the next, according to the following formula:

Loss development factor F(і,j)= S (і,j+1)/S (і,j).

Loss development factors g(j) are calculated as the average value of loss development factors over the periods of loss occurrence.

Odds table

Period of occurrence of insured events (i)

Loss development coefficients g(j)

Loss development factors f (j)

Delay factors h(j)= 1 - 1/f (j)

1-1/ 1

g(n-1)

1*g(n-1)

1-1/( g(n-1))

g(n-2)

1*g(n-1) *g(n-2)

1-1/ (1*g(n-1) *g(n-2))

...

n-1

g(2)

1*g(n-1) *g(n-2)*…* g(2)

1-1/ (1*g(n-1) *g(n-2)*…* g(2))

g(1)

1*g(n-1)*g(n-2)*…* g(2)*g(1)

1-1/ (1*g(n-1) *g(n-2)*…* g(2)*g(1))

Note: the Table of Coefficients indicates:

in the column “Loss development coefficients g(j)” - the values of the loss development coefficients indicated in the Table of loss development coefficients g(j);

in the column “Loss development factors f (j)” - accumulated values of loss development factors;

in the column "Lagging factors h(j)" - values equal to 1 - 1/f (j), where f (j) is a development factor.

Table for calculating the loss ratio for policies

Fiscal year (y)

Loss incurred

Earned bonuses

Loss ratio for policies

UL(1)

UP(1)

U(1)=UL(1)/UP(1)

UL(2)

UP(2)

U(2)=UL(2)/UP(2)

...

m-1

UL(m-1)

UP(m-1)

U(m-1)=UL(m-1)/UP(m-1)

UL(m)

UP(m)

U(m)=UL(m)/UP(m)

Note:

in the Loss Ratio Calculation Table:

the column “Losses Incurred” shall indicate the values of losses incurred as of the reporting date, including expenses for the settlement of losses, under insurance (reinsurance) contracts that entered into force in the financial year preceding the period of occurrence of insured events;

in the column “Earned premiums” the earned premium under insurance (reinsurance) contracts that entered into force in the financial year preceding the period of occurrence of insured events is indicated;

The loss ratio U is determined by the following formula:

U ≥ [U (1) + U (2) + … + U(m)]/m, where:

U(m) - loss ratios for policies for each m-th financial year preceding the period of occurrence of insured events, calculated as the ratio of the amount of losses incurred, including expenses for adjusting losses, under insurance (reinsurance) contracts that entered into force in the corresponding financial year to insurance premiums earned on the reporting date under these contracts;

m is the number of financial years.

Table of reserve for occurred but unreported losses

Period of occurrence of insured events (i)

Earned bonuses

Loss ratio U

Expected final losses z(i)

Delay factors h(j)

Losses that occurred but were not paid at the reporting date R(i)

Losses declared but not settled at the reporting date

Occurred but unreported losses

3=1*2

5=3*4

7=5-6

...

n-1

Total

Note: in the Table of the reserve for occurred but unreported losses of this Form:

in the column “Earned premiums” - the earned premium of the insurance organization in the corresponding period;

in the column "Loss ratio U" - the value of the loss ratio, the size of which is not less than the average value of loss ratios for policies in accordance with the Table for calculating the loss ratio for policies of this Form;

in the column “Lagging factors h(j)” - the values of the lag factors h(j) calculated in the Table of coefficients of this Form;

if the calculation of the Bornhütter-Ferguson method is based on payments, then IBNR is the amount of losses that occurred but were not reported (column 7 of the Table of the reserve for occurred but unreported losses of this Form), if the calculation is based on incurred losses, then IBNR is the amount of losses that occurred but were not paid as of the reporting date (column 5 of the Table of the reserve of incurred but unreported losses this Form);

in the column “Occurred but not reported losses” - the difference between the columns “Occurred but not paid for losses R(i) on the reporting date” and “Declared but not settled losses on the reporting date” in the corresponding period. In case of a negative difference, the value 0 (zero) is taken in the “Occurred but unreported losses” column.

When calculating IBNR minus the reinsurer's share:

in the column “Earned premiums” the values of the earned premium minus the reinsurer’s share in the corresponding period are indicated;

in the column "Lagging factors h(j)" the values of lag factors h(j) are indicated taking into account the reinsurer's share, calculated in the Table of coefficients of this Form.

Appendix 12 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Distribution of liabilities of an insurance (reinsurance) company based on losses incurred

Table of accumulated amounts of payments (paid losses), grouped by periods of occurrence of insured events

Period of occurrence of insured events (i)

Accumulated paid losses by period (j)

Periodicity

...

n-2

n-1

X (1,1)

X (1,1) + X (1,2)

X (1,1) + … + X (1, n-2)

X (1,1) + … + X (1, n-2) + X (1, n-1)

X (1,1) + … + X (1, n-1) + X (1, n)

X (2.1)

X (2.1) + X (2.2)

X (2,1) + … + X (2, n-2)

X (2,1) + … + X (2, n-2) + X (2, n-1)

X (3.1)

X (3.1) + X (3.2)

...

X (3,1) + … + X (3, n-2)

...

n-1

X(n-1,1)

X (n-1,1) + X (n-1,2)

X(n,1)

X (i,j) – payments (paid losses) at the end of the j-th period, for insured events that occurred in the i-th period.

Table of reported outstanding losses grouped at the end of each loss period

Period of occurrence of insured events (i)

Reported unresolved losses by period (j)

Periodicity

...

n-2

n-1

Y(1,1)

Y (1,2)

Y(1,n-2)

Y(1,n-1)

Y(1,n)

Y (2,1)

Y (2,2)

Y(2,n-2)

Y(2,n-1)

Y(3.1)

Y(3.2)

...

Y(3,n-2)

...

n-1

Y(n-1,1)

Y(n-1,2)

Y(n,1)

Y (i,j) – declared losses at the end of the j-th period, for insured events that occurred in the i-th period.

Table of accumulated losses based on incurred losses__________________ as of the reporting date

Period of occurrence of insured events (i)

Loss incurred (j)

Periodicity

...

n-2

n-1

X (1,1) + Y (1,1)

X (1,1) + X (1,2) + Y (1,2)

X (1,1) + … + X (1, n-2) + Y (1, n-2)

X (1,1) + … + X (1, n-2) + X (1, n-1) + Y (1, n-1)

X (1,1) + … + X (1, n-1) + X (1, n) + Y (1, n)

X (2,1) + Y (2,1)

X (2,1) + X (2,2) + Y (2,2)

X (2,1) + … + X (2, n-2) + Y (2, n-2)

X (2,1) + … + X (2, n-2) + X (2, n-1) + Y (2, n-1)

X (3.1) + Y (3.1)

X (3.1) + X (3.2) + Y (3.2)

...

X (3,1) + … + X (3, n-2) + Y (3, n-2)

...

n-1

X (n-1,1) + Y (n-1,1)

X (n-1,1) + X (n-1,2) + Y(n-1,2)

X (n,1) + Y (n,1)

Appendix 13 to the Formation Requirements, methodology for calculating insurance reserves and their structure

Mortality rates for calculating insurance payments under a pension annuity contract

Age

Men

Women

0.0024481809

0.0006274238

0.0025943697

0.0006676971

0.0027233502

0.0007056074

0.0028425047

0.0007412992

0.0029577995

0.0007767228

0.0030798642

0.0008119244

0.0032114459

0.0008505828

0.0033612022

0.0008924813

0.0035291163

0.0009385639

0.0037197668

0.0009906002

0.0039348729

0.0010483273

0.0041784741

0.0011163161

0.0044493232

0.0011944894

0.0047483920

0.0012837138

0.0050708321

0.0013820340

0.0054208771

0.0014874267

0.0057993651

0.0016000204

0.0062130588

0.0017212900

0.0066625747

0.0018544187

0.0071474184

0.0020023703

0.0076680100

0.0021676861

0.0082244930

0.0023516809

0.0088216652

0.0025538640

0.0094584171

0.0027714017

0.0101280734

0.0030039882

0.0108212272

0.0032509632

0.0115228363

0.0035141552

0.0122233730

0.0037896536

0.0129133803

0.0040738105

0.0135955053

0.0043618174

0.0142859526

0.0046536866

0.0150084234

0.0049548709

0.0157948684

0.0052740418

0.0166676936

0.0056276768

0.0176400368

0.0060313270

0.0187181346

0.0065036410

0.0199037048

0.0070585173

0.0212196935

0.0077140411

0.0226839310

0.0084825984

0.0243147043

0.0093742669

0.0261183219

0.0103971349

0.0280940488

0.0115659366

0.0302425933

0.0129055099

0.0325700636

0.0144510322

0.0350858599

0.0162382933

0.0378016624

0.0182951136

0.0407143335

0.0206292088

0.0438107362

0.0232341066

0.0470696180

0.0260982484

0.0504811467

0.0292280131

0.0540616273

0.0326530238

0.0578665497

0.0364307871

0.0619843680

0.0406359180

0.0664916973

0.0453425305

0.0714740982

0.0506171641

0.0769774599

0.0565051459

0.0830319346

0.0630317637

0.0896147271

0.0702018558

0.0966845108

0.0779949274

0.1042579696

0.0864008004

0.1122879396

0.0954219949

0.1207280202

0.1050267964

0.1295129290

0.1151705866

0.1385844507

0.1258039246

0.1481204333

0.1369032122

0.1582202894

0.1485338001

0.1691737115

0.1610224830

0.1809266576

0.1738000217

0.1934419461

0.1871487399

0.2065024009

0.2007375293

0.2203274393

0.2150498902

0.2350011690

0.2300562069

0.2507578103

0.2455860090

0.2673864944

0.2613597427

0.2847965003

0.2771617489

100

0.3046228561

0.2955023955

101

0.3275264532

0.3170455227

102

0.3549860330

0.3437003847

103

0.3868036658

0.3745180950

104

0.4235753219

0.4101464523

105

0.4660173959

0.4516534218

106

0.5147843396

0.5000418052

107

0.5634808009

0.5490524338

108

0.6239580347

0.6110982356

109

0.7883509815

0.7810056771

110

1.0000000000

Requirements for formation, calculation methodology and placement of insurance reserves

Requirements for the formation, methodology for calculating insurance reserves and their structure

Chapter 1. General provisions

Chapter 2. Requirements for information necessary for calculating insurance reserves

Chapter 3. Structure of insurance reserves

Chapter 4. Calculation of insurance reserves for the general insurance industry

Chapter 5. Calculation of insurance reserves for the life insurance industry

Chapter 6. The reinsurer's share in insurance reserves

Paragraph 1. Industry "general insurance"

Paragraph 2. Life insurance industry

Log book of existing insurance (reinsurance) contracts and contracts transferred to reinsurance for the “general insurance” industry

Log of losses (except for insurance payments made)

Insurance payments logbook

Journal of accounting of existing insurance (reinsurance) contracts and contracts transferred to reinsurance for the “life insurance” industry

Journal of accounting of existing pension annuity contracts and other types of annuity insurance

Journal of accounting of existing annuity contracts concluded in accordance with the Law of the Republic of Kazakhstan dated February 7, 2005 "On compulsory insurance of an employee against accidents during the performance of his labor (official) duties"

Journal of accounting of insurance (reinsurance) contracts and additional agreements to insurance (reinsurance) contracts that entered into force over the last 12 (twelve) months

Journal of the cost of projected payments

Calculation of the reserve for occurred but unreported losses using the chain ladder method without adjusting for inflation

Reporting period: as of "___" "________________" 20__ years

Calculation of the reserve for incurred but unreported losses using the chain ladder method adjusted for inflation

Reporting period: as of "___" "________________" 20__ years

Calculation of the reserve for occurred but unreported losses using the Bornhuetter-Ferguson method

Reporting period: as of "___" "__________" 20 __ years

Distribution of liabilities of an insurance (reinsurance) company based on losses incurred

Table of accumulated amounts of payments (paid losses), grouped by periods of occurrence of insured events

Mortality rates for calculating insurance payments under a pension annuity contract

Reporting period: as of "_" "____________" 20 years

Reporting period: as of "_" "____________" 20 years

Reporting period: as of "_" "______" 20 years