Mandatory Home Insurance Program for Natural Disasters under Consideration in Kazakhstan

Kazakhstan is considering the implementation of a mandatory home insurance system to protect residential properties against natural disasters such as earthquakes, floods, and wildfires.

The initiative has been incorporated into the 2026–2030 Insurance Market Development Program, approved by the Agency for Regulation and Development of the Financial Market together with the National Bank of Kazakhstan.

Under the proposed framework, the system will initially undergo a pilot phase in three regions before expanding to 16 areas identified as prone to natural hazards. The program aims to partially offset financial losses for citizens whose homes are damaged or destroyed by catastrophic events.

According to preliminary plans, annual insurance premiums are estimated to range between 2,000 and 20,000 tenge, depending on the disaster risk level of each region. In the event of property damage, compensation could reach up to 500 times the paid premium, amounting to an estimated 1 million to 10 million tenge. Officials emphasized that these rates and payout amounts have not yet been finalized.

To oversee the mechanism, a dedicated Mandatory Housing Insurance Fund will be established to pool contributions and disburse payouts to affected homeowners. The fund will first accumulate capital before mandatory payments are collected from property owners.

Although the strategic program was approved on October 30, mandatory home insurance is not yet in effect. Implementation requires legislative amendments, with a relevant bill scheduled for submission to Parliament by the end of 2026.