Industrial Development Fund JSC (hereinafter referred to as the Fund), is the owner of the leased property in accordance with the requirements of the Law of the Republic of Kazakhstan "On Financial Leasing", in accordance with the requirements of which includes in the obligations of lessees a condition on the insurance of leased items, in accordance with the Insurance Policy Fund, for the purpose of minimizing the risks of the Fund for the safety of property.
To improve the quality of insurance coverage, the Fund signed a cooperation agreement with a pool of insurance companies in March 2021. The pool was created in January 2021, consisting of five large insurance companies (25% of the market), is a voluntary association of insurers who agree to carry out insurance on uniform conditions and at uniform rates.
It should be noted that in accordance with the letter of the Agency of the Republic of Kazakhstan for regulating the development of the financial market dated February 8, 2021 No. 03-3-13 / 23 / YUL-G-134, cooperation with the Pool does not violate the requirements of the legislation on insurance activities.
The purpose of creating the Pool was the need to provide the Fund's clients with the possibility of reliable insurance of leased items, with joint and several liability for making payments, protected by international reinsurance.
It is important to note that financial leasing agreements concluded with lessees, a cooperation agreement with the Pool
do not contain any requirements aimed at forcing the Fund's clients to purchase insurance services only from the Pool participants.
The Fund's client may and has the right to independently choose an insurer that is not included in the Pool, subject to its compliance with the requirements of the Fund and the relevant insurance coverage.
The above contracts contain standard conditions for insurance contracts and applied low rates for insurance, which are posted on the Internet resource of the Fund and the websites of the Pool participants.
Open access to standard conditions and tariffs, makes it possible to exclude the presence of discriminatory conditions in the insurance coverage of other insurers and ensures transparency of insurance conditions.
In our opinion, the diversification and distribution of risks, as well as the pooling of insurers' capital, is a real additional guarantee of the insurance service provided.
In cases when any of the Pool participants does not make their part of the insurance payment, other participants make payment for it, and then they make mutual settlements among themselves.
The insured may choose any of the Pool participants as his insurer, who will distribute the accepted risk among his partners.
In this regard, we believe that the presence of the Pool as an insurance instrument provides:
1) transparency of insurance operations;
2) helps to minimize the risks of low-quality insurance, by distributing risks between several insurance organizations;
3) reduction of expenses of the Fund's clients for insurance due to low competitive tariffs.
In the international insurance market, Pools are a generally recognized practice and are created even at the state level (for example, catastrophic risk insurance pools in the USA, the European Union, Japan, etc., weather risk insurance pools, "green economy", etc.).
As for the commercial interests of Eurasia Insurance Company JSC, at the request of which the Agency for Development and Protection of Competition of the Republic of Kazakhstan issued a notice to the Fund, it should be noted that its share in the insurance portfolio for large property objects of the Fund at the beginning of 2021 was more than 56%, of the total volume of insurance.
At the same time, as of March 2022, in the insurance portfolio of the Fund, the share of Eurasia Insurance Company JSC amounted to 29.2%, the share of companies included in the Pool - 32.5%, others (6 companies) - 38.3%.
