Governance, Risk and Compliance - The Mongolian Insurance Industry

Governance, Risk and Compliance - The Mongolian Insurance Industry


The Financial Regulatory Commission (FRC) supervises and regulates the Mongolian insurance industry. It is responsible for the regulation of the nation’s financial sector and has various departments to regulate different aspects of business. The Insurance Market Department of the FRC is responsible for the regulation and control of the country’s insurance industry. The FRC under the provisions of the Insurance Law 2004 supervises and regulates insurers and reinsurers in Mongolia. Intermediaries, insurance agents and loss adjusters must abide and operate their business in pursuant to the Law of Mongolia on Insurance Intermediaries 2004.

The main responsibility of the FRC is to protect the rights and interests of policyholders. It is also responsible for the general administration of laws governing the insurance industry. The Committee on Financial Regulations is responsible for regulating and supervising insurance business. Furthermore, the State Ikh Khural shall approve the activities and organizational structure of the Coordination Committee. The Committee shall be financed from the state budget and must report to the State Ikh Khural.

Key Findings

  • FRC of Mongolia supervises and regulates the insurance and reinsurance industry
  • Composite insurance is not permitted in the Mongolian insurance industry
  • 100% foreign direct investment is permitted in the Mongolian insurance industry
  • The government of Mongolia does not levy any tax on insurance premiums
  • The placement of non-admitted insurance is not permitted in Mongolia
The report Governance, Risk and Compliance - The Mongolian Insurance Industry, is the result of extensive research into the insurance regulatory framework in the Mongolia. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together GlobalData’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

The report provides -
  • An overview of the insurance regulatory framework in the Mongolia
  • The latest key changes, and changes expected in the country’s insurance regulatory framework
  • Key regulations and market practices related to different types of insurance product in the country
  • Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the Mongolia
  • Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
  • Details of the tax and legal systems in the country
  • The report covers details of the insurance regulatory framework in the Mongolia.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
  • Gain insights into the insurance regulatory framework in the Mongolia.
  • Track the latest regulatory changes, and expected changes impacting the Mongolian insurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance product.

1.1 What is this Report About?
1.2 Definitions
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulation
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Workmen’s compensation insurance
2.4.2 Motor third-party liability insurance
2.4.3 Deposit insurance
2.4.4 Liability insurance for ships with respect to oil pollution
2.4.5 Health insurance
2.4.6 Social insurance
2.4.7 Seed crop insurance
2.4.8 Professional indemnity insurance for intermediaries
2.5 Supervision and Control
2.5.1 International Association of Insurance Supervisors
2.5.2 The Financial Regulatory Commission (FRC)
2.5.3 Mongolian Insurers Association (MIA)
2.6 Non-Admitted Insurance Regulations
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and Penalties
2.7 Company Registration and Operations
2.7.1 Type of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margin
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution
3.1 Methodology
3.2 Contact GlobalData
3.3 About GlobalData
3.4 GlobalData’s Services
3.5 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: Mongolia - Insurance Regulatory Framework Key Features
Table 3: Mongolia - Life Insurance Regulatory Framework
Table 4: Mongolia - Property Insurance Regulatory Framework
Table 5: Mongolia - Motor Insurance Regulatory Framework
Table 6: Mongolia - Liability Insurance Regulatory Framework
Table 7: Mongolia - Social Insurance Contribution Rates
Table 8: Mongolia - Percentage of Allowable Assets for General Insurers’ Solvency Calculation
Table 9: Mongolia - Percentage of Allowable Assets for Reinsurers’ Solvency Calculation
Table 10: Mongolia - Corporate Tax Rates for the Financial Year 2018
List of Figures
Figure 1: Mongolia - Insurance Supervision and Control at Various Levels
Figure 2: Mongolia - Insurance Regulatory Frameworks for Company Registration and Operation

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings