Since the beginning of 2025, car owners in Kyrgyzstan have received approximately $200,000 in insurance payouts under the country’s compulsory motor insurance (CMI) program, according to the State Insurance Organization (SIO).
The rise in payouts has been matched by growing coverage of motor insurance, particularly after fines were introduced for individuals without insurance policies on July 1, 2025. The fine is set at $35, while the cost of an annual policy ranges from $20 to $50, depending on engine size and the number of insured persons.
For legal entities and foreign nationals, the cost of an annual policy is $150. Compulsory insurance for these groups has been in effect since April 1, 2023. Additionally, insurance is now mandatory when re-registering or purchasing a vehicle, as part of the phased implementation of universal motor insurance in Kyrgyzstan.
According to the SIO, 38,345 individuals purchased policies in the first month following the introduction of penalties. Between January 1 and July 28, 2025, a total of 266,465 vehicles were insured through the SIO.
The organization told The Times of Central Asia that many citizens had voluntarily obtained insurance before the penalties were introduced, reflecting a growing culture of legal compliance and personal responsibility among car owners.
During the reporting period, the SIO registered 190 insurance claims. The largest payout in 2025 was $3,500, which was divided between two parties involved in a traffic accident.
Insurers report that the sector is prepared to handle further growth in claims.
The SIO was initially capitalized with $12 million from the state budget. Its authorized capital has since been increased at least twice. Additionally, all state institutions are required to insure their assets through the SIO.
Alongside the state-run insurer, 14 private insurance companies operate in the Kyrgyz market, contributing to a competitive environment.
As previously reported by The Times of Central Asia, the SIO’s financial model includes a fund reservation mechanism for insurance payouts, ensuring the organization’s ability to meet its obligations even amid a rise in accident claims.
While some experts caution that the market could face saturation in the coming years, the short-term outlook for the industry remains one of steady growth.
