Under the "Strengthening Budget and Financial Stability Project" implemented in cooperation with the World Bank, the Ministry of Finance, the Financial Regulatory Commission /FRC/, and the Mongolian Insurance Association have prepared the draft revisions to the Law on Insurance, the Law on Insurance Intermediation, and the Law on Drivers’ Insurance. Within the scope of gradually implementing legal reforms in the insurance sector, in accordance with the relevant policy and planning of the Parliament and Government of Mongolia, the draft revisions of the laws were published on the Ministry of Finance’s website in June 2022 and have carried out the public discussion step electronically, thus reflected 277 suggestions received from the professional associations, stakeholders and individuals. The revised versions of the laws were prepared for the next round of discussions. 

Thus, on 17, 18, and 19 August  2022, the working group of the Financial Regulation Committee /FRC/ and the Mongolian Insurance Association held a joint vacuum meeting at the FRC building for 3 days. Shortly after the Pandemic, the Law on State Savings was approved in order to enforce financial discipline in the government, its organizations at all levels, public services, and their activities, and in connection with ensuring transparency, increasing efficiency, and limiting and monitoring waste. Therefore, these draft laws were prepared in an environmentally friendly manner, with 100% digital presentation of the drafts and information at zero cost without the use of paper handouts. In this way, the Ministry of Finance and other affiliated organizations have successfully organized a number of discussions to encourage others to set a good example of how any public discussion can be held in an environmentally friendly manner without spending budgetary money.

At the meeting, they got acquainted with the basis and research of the suggestions and were mutually agreed upon, 50 suggestions of which were related to the draft Law on Insurance Brokerage, 13 of which were related to the Law on insurance intermediation, and 10 suggestions of which were submitted on the draft Law on Driver's Insurance. Representing the Insurance Association of Mongolia, A. Anarmaa, lawyer of Mongolia Insurance LLC; J. Davaasuren, lawyer of Bod Insurance LLC; O. Gerelmaa, G. Anu-Ujin, lawyer of Monre Insurance LLC; S. Maralmaa, lawyer of Tenger Insurance LLC; and J. Batjargal, Executive Director of the Insurance Association of Mongolia; and Z. Batbold, Head of the Insurance Department, P. Tserendejid, Senior Referee, E. Sainzaya, Specialist, O. Byambasuren, Ts. Dolgorsuren, Specialist, N. Battsetseg, Senior Specialist, P. Monkhsaikhan, referent N. Dulamsuren, B. Nyam-Ochir, senior specialist of the Legal Department, who represented the Financial Regulatory Commission and N. Tuvshinjargal, senior specialist of the Ministry of Finance, project consultant B. Javkhlantsogt, representing the Ministry of Finance, held the discussion.

By including the relevant proposals in the revised draft of the insurance package laws, the boundaries of insurance categories will be clarified, the classification nomenclature will be formulated more clearly for the users, the insurance industry participants will be able to provide and develop insurance services based on advanced electronic technology, create a legal environment, develop life insurance, and compulsory insurance. Moreover, it will enable the creation of a unified system, support technology-based insurance products and services, create professional investor insurers, improve the optimal risk management system, and improve the legal environment to protect the interests of policyholders. Also, in order to improve the risk management system, legal provisions relating to the improvement of the reinsurance operation system, increasing the capacity of domestic insurers, and reducing the outflow of foreign currency by including the regulation of insuring a certain percentage of reinsurance to domestic reinsurers, enabling electronic and advanced insurance operations which creates the opportunity to use technology, develop, and create a legal environment, were all reflected in the revised draft of the Insurance Law.

By revising the Driver's Insurance Law, the quality and service of the insurance will be improved, insurance premiums and evaluations will be in line with international standards, based on actual values, government involvement will be reduced, the damage will be quickly assessed in the event of an insurance incident, compensation will be provided in a short period of time, and road accidents will be reduced and the rights of the victim will be protected in case of insurance events.

The driver's insurance fund was only responsible for providing insurance compensation to the victim due to the conditions stipulated by the law that the insurer would not provide compensation but the revised law stipulates that the insurers themselves would now be responsible for this activity, which means the victim would have the opportunity to receive insurance compensation regardless of whether the victim was insured or not. By reflecting such provisions, the reputation of the insurance industry will be increased and will enable the insurers to create a unit that is in charge of resolving the urgent services within the organizational structure and the package draft laws are being finalized to be submitted to the Parliament of Mongolia.