XPRIMM: In the first half of 2026, the insurance market grew by more than 40%. What factors do you think drove this growth?

Ulan Baktygulov: The insurance market's growth of over 40% indicates that insurance in Kyrgyzstan is gradually playing a more significant role in economic activity and risk management systems.

In my view, a combination of factors has driven the market dynamics. First and foremost, there is an ongoing development of compulsory insurance lines, particularly mandatory motor third-party liability insurance (MTPL). This type of insurance fosters insurance culture among the public, enhances social protection for citizens, and creates new opportunities for the insurance market's growth. At the same time, demand for property and personal insurance is rising, which points to a gradual increase in the appreciation of the value of insurance protection.

The insurance market’s development also is a key factor itself: companies are expanding their product offerings, improving customer service, and gradually shifting toward more systematic risk management.

At the same time, I would view the current growth as more than just a quantitative metric. It is more important that this growth be accompanied by continued development of the insurance culture, improvements in service quality, and expansion of actual insurance coverage.

XPRIMM: What new market trends would you highlight compared to the same period last year?

Ulan Baktygulov: A notable trend is the continued growth of insurance as a tool for protecting assets, lives, and financial interests of both individuals and businesses.

An analysis of the market structure for the first half of 2026 reveals that property insurance generates a significant share of premiums—approximately KGS 2.42 billion. Personal insurance and compulsory insurance also represent substantial volumes, at roughly KGS 1.47 billion and KGS 1.29 billion, respectively.

The Takaful segment’s development is also worth noting. In the first half of the year, the segment amounted to approximately KGS 70.5 million. Although its share in the market remains relatively small, the segment’s continued development demonstrates a demand for alternative insurance protection models.

Overall, the market is becoming more diversified; however, significant potential for further growth remains, particularly in the voluntary insurance and individual insurance segments.

XPRIMM: How would you describe the structure of the market GWP portfolio in the first half of the year? Were there any notable shifts across segments?

Ulan Baktygulov: The structure of the market premium portfolio shows a fairly broad distribution across key segments. Property insurance makes up the largest share—KGS 2.42 billion, or approximately 44% of the total. It is followed by personal insurance (KGS 1.47 billion) and compulsory insurance (KGS 1.29 billion). Liability insurance generated around KGS 308 million, while in Takaful insurers collected about KGS 70.5 million. Life insurance currently represents a minimal share—around KGS 134,000.

Thus, the bulk of the market today is driven by property, personal, and compulsory insurance.

XPRIMM: Paid claims saw triple-digit growth in the first half of the year. In your opinion, what factors drove this increase in paid claims compared to the same period last year?

Ulan Baktygulov: The rise in paid claims is a natural consequence of the insurance market expansion itself. As number of concluded contracts and GWP grow significantly, insurance obligations—specifically those resulting in actual claims—inevitably increases over time.

In the first half of 2026, insurers paid out approximately KGS 1.18 billion. The largest share was paid in property insurance (around KGS 662 million) and compulsory insurance (around KGS 381 million). Personal insurance payments totaled approximately KGS 123 million.

Therefore, I would not view the increase in paid claims merely as a rise in insurers' expenses. From the perspective of market development, it also demonstrates that insurance is fulfilling its core function: providing financial protection to clients when insured events occur.

XPRIMM: The market remains highly concentrated, with the five largest companies generating over 63% of total GWP. What can you tell us about the leading companies based on their 1H results?

Ulan Baktygulov: High concentration indeed remains a hallmark of the Kyrgyz insurance market. At the end of the first half of 2026, the five largest insurance companies collected about 63.1% of the total market GWP.

The leader in terms of GWP is Kyrgyzstan insurance company – KGS 866.2 million, which is about 15.6% of the market. It is followed State Insurance Organization (GSO) – KGS 763.2 million, Dordoi Insurance – KGS 698.3 million, NSK – KGS 644.8 million and Arsenal-Kyrgyzstan – KGS 533.9 million.

At the same time, the portfolios of leading companies is interesting. For example, Kyrgyzstan insurance company collects a significant portion of premiums through personal insurance, property and compulsory insurance. Dordoi Insurance gets the bulk of its premiums from property insurance. In the portfolio of NSK property and compulsory insurance also play a significant role. This indicates that market leaders do not develop based on the same model, but rather have different specializations and insurance portfolios.

In my opinion, concentration itself is not a negative factor, especially for a relatively young market. Large companies have extensive experience, client base and infrastructure, which allows them to be the drivers of market development.

At the same time, in the mid-term, it is important to create conditions for increased competition and development of other market participants. Healthy competition should manifest itself not only in the battle for premiums but also in the quality of insurance products, the level of customer service, the speed of claims settlement, digitalization, and the insurers' ability to manage risks effectively.

Thus, I would describe the current market concentration as a stage in the market's development.

XPRIMM: In your view, what are the prospects for the market through the end of the year? Are there any new measures planned that could impact the insurers’ operations?

Ulan Baktygulov: I expect the insurance market to maintain its positive momentum through the end of 2026. While the first quarter and the first half of the year have already demonstrated robust growth rates, the priority now is to ensure this growth is sustainable.

Key areas for future development should include expanding insurance coverage, enhancing customer service quality, growing voluntary insurance lines, and refining claims settlement mechanisms.

Continued digitalization of insurance processes will be of particular importance. This is especially significant for the Kyrgyz market, as digital tools can make insurance products more accessible to the public while simultaneously boosting insurer efficiency.

Furthermore, as the market expands, issues regarding financial stability, corporate governance quality, reserve adequacy, and effective risk management will become increasingly critical.

Overall, I view the market's prospects positively; however, the next stage of development must go beyond merely increasing premium volumes. The primary objective is to build a resilient insurance market capable of effectively protecting the interests of individuals and businesses while successfully fulfilling its economic function.