Abstract
The aim of the study was to analyse insurance as an instrument of financial protection, its effectiveness and prospects in the context of the Kyrgyz economy. The study examined the dynamics of key macroeconomic, banking and insurance indicators, distinguishing observed data for 2020-2024 from forecast values used in the scenario analysis for 2025 and the period up to 2030. The empirical base consisted of official national statistical data, banking statistics, annual reports of international financial institutions and analytical reviews by international organisations. The study showed that gross insurance premiums increased from 2.8 to 5.1 billion soms between 2020 and 2024, corresponding to nominal growth of approximately 82.1%, while insurance penetration remained at approximately 1% of gross domestic product in 2024. Population coverage by insurance remained low, at approximately 8% in 2024, and the claims ratio fluctuated within the range of 35-45% during the observed period. The principal constraints included macroeconomic instability, widespread informal employment, limited financial inclusion, low institutional trust and insufficient development of long-term insurance products. Banking activity expanded concurrently: the volume of new deposits increased from 54.0 to 72.0 billion soms and new lending from 40.0 to 56.0 billion soms between 2020 and 2024, creating potential for the development of bancassurance. The findings indicate the need for coordinated measures involving institutional strengthening, public insurance programmes, financial education, digitalisation, integration with the banking sector and improvement of the analytical basis for regulatory decisions. The practical significance of the study lies in its potential contribution to public policy on financial protection through insurance mechanisms adapted to the specific institutional and socio-economic conditions of the Kyrgyz Republic.
Keywords: market, protection of the agricultural sector, institutional trust, banking activity, redistribution of risks, economic accessibility of services, coverage of the economic security system
How to Cite:
Asanbekova, F., Ivakova, Z., Ostrovskaia, E., Osmonova, A. & Choibekova, D., (2026) “Insurance as a Means of Minimising Financial Risks”, Australasian Accounting, Business and Finance Journal 20(3): 7, 122–157. doi: https://doi.org/10.14453/aabfj.2276