The main responsibilities of the FRC are to improve the strategic policy, laws and regulations; for the development of the insurance market. These are to establish rules, procedures and standards for insurers and insurance intermediaries, to improve the legal environment for participation in the stock market, and to protect market participants from potential risks.
The FRC issues regulations and licenses for insurers, agents, brokers, loss adjusters and actuaries. The Commission also develops regulations for the operation of insurance; supervising performance, and promoting professionalism in the insurance industry
A total of 319 (excluding double insurance intermediaries) insurance companies, brokers, damage assessors, audit companies, actuaries, auditors, and 2,473 insurance representatives, operated in the reporting year under the FRC's licensing, permission, and registration
Total assets of insurance companies
o In 2020 total assets increased by 4.5% from the previous year to MNT 382.1 billion; and increased by 83.3% from 2016.
o Compared to other types of insurance, the total assets of ordinary insurance companies increased by 12.8% to MNT 317.0 billion, accounting for 83% of the total assets of the sector.
o The total assets of double insurance companies decreased by 26.8% compared to the previous year and reached MNT 55.2 billion, accounting for 14.4% of the total assets of the sector. In the first quarter of 2020, the growth of double insurance assets decreased compared to the previous year due to the revocation of licenses to operate double insurance.
o The total assets of long-term insurance companies increased by 6.1% from the previous year, reaching MNT 9.9 billion, accounting for 2.6% of the sector.
The relevant regulations of the 'Insurance Package rules' were updated and amended:
The regulations relevant to the Insurance Package rules were updated and amended. To increase confidence among the insured in the public insurance market (making the activities of the insurance market participants more ethical and making competition fairer) the Insurance Market Code of Conduct was revised. This was approved by the Commission’s Resolution No. 114 of 2020, and registered in the Unified State Register of Administrative Norms. In accordance with Law on Insurance, Law on Insurance Professional Participants (and other relevant legislation and the measures set out in the policy documents approved by the Parliament and the Government of Mongolia) the following were prepared by the Commission Resolution No. 959 of 2020:
• first appendix to the Insurance Package Rules,
• requirements and compliance for insurers and insurance intermediaries, and
• list of documents to be submitted when applying for a license.