Sovereign Wealth Fund "Samruk-Kazyna" JCS held the meeting on insurance issues

/IRBIS, December 2, 2011/ - December 1 Sovereign Wealth Fund "Samruk-Kazyna" JCS held a working meeting on insurance issues, as reported by the press service of the Fund. It is reported that the Chairman of the Board of SWF SK Timur Kulibayev held a working meeting on improving insurance coverage in the group of companies of the Fund. "At the meeting it was noted that the Fund's subsidiaries direct large sums for insurance of their assets - an average of KZT 7.8 billion tenge per year. The bulk of these payments accounted for seven of the largest companies - KazMunayGas, Kazakhstan Temir Joly, Samruk-Energy, Air Astana Kazakhtelecom, Kazatomprom and KEGOC", - was said in a statement. As noted, the analysis showed that the insurance in companies of the Fund is performed via the largest and most trusted insurance companies. However, there were also negative facts such as the lack of requirements for insurance and reinsurance organizations, and proper supervision, poor quality of service brokers, the lack of coverage of some significant risks, the availability of insurance cases in insurance companies with weak financial condition. Thus, at the meeting, there were cases that the insurance premiums paid by some companies, not involved in the corporate insurance program, exceeded the average market price. "In the autumn of this year, the Fund Board approved the regulations on the organization of insurance coverage in the group companies of the Fund, implementation of which will neutralize the shortcomings of insurance protection. The rules define the organization of centralized corporate insurance programs, as well as requirements for Kazakhstani and international insurance/reinsurance organizations", - as stated in message. It is reported that following the meeting the head of the Fund Kulibayev instructed to ensure the transparency of the insurance assets in subsidiaries, improve expenditure control, as well as find out all instances of overvaluation and insurance companies to punish employees responsible for violations and damage. [2011-12-02]