OREANDA-NEWS. April 23, 2013. This year our bank has purchased the insurance company “London-Bishkek” (renamed into CJSC "Jubilee Kyrgyzstan Insurance Company”) and received, thus, an opportunity to provide a wider range of services to its clients. We have interviewed the general director of CJSC "Jubilee Kyrgyzstan Insurance Company” – Valeriya Khegai.

KICB: Vaeriya, how much are services of the insurance companies popular today among citizens of Kyrgyzstan?

Valeriya: Despite that many players of the insurance services market  have been working in the country on the average for 20 years, total yield of the KR insurance companies amounts for less than 0,3% against GDP or USD 3,00 per capita (for comparison – 0,7% in Kazakhstan or USD 60 and 1,3% in Russia or USD 300,00). Out of this number the major clients of insurance companies today are legal entities: there are, for example, many diplomatic missions and foreign companies among our clients.

KICB: Why do citizens treat the insurance market with distrust?

Valeriya: There are two main reasons. Firstly, bitter experience of the previous years. In 90-s many lost funds deposited with various financial institutes. In addition, later the problems with one of the biggest player so Kyrgyzstan insurance sector were added.

Now we are facing difficult task: to restore population’s confidence in provided services.

Secondly, insufficient awareness of citizens about insurance products and the insurance market in general. Where did you last see information about insurance?  How much is this topic interesting for mass media? I think we shall combine efforts and explain to population that insurance is necessary, remunerative and not very expensive as many think.

KICB: What groups can be insurance products divided into?

Valeriya: Two basic categories: voluntary and compulsory. At present 8 companies out of 16 are engaged into voluntary insurance in Kyrgyzstan – for this, special licenses are required. Most often vehicles, commercial property are insured and, on the contrary, most seldom – employees are insured. Among our clients life of their 500 employees with enviable constancy is insured only by the Aga Khan Foundation, the University of Central Asia and the First Microcredit company (Aga Khan Development Network).

KICB: What do you recommend to pay attention to when selecting an insurance company?

Valeriya: First of all, to reliability: find out how many years a company has been working at the market. Ask for the list of clients, their feedbacks about insurance company’s work. Look at the payment history. And pay attention to the fact that: not all what is cheap is good. There was a case in our practice when one of the players at the market offered very cheap insurance of premise to a client – after inspection it was found out that the premise was insured only against consequences of … thunder. 

To be continued.