Photo: Aibek Skakov / Pexels
Kazakhstan’s financial regulator and National Bank have adopted a plan to modernise insurance through 2030, with 18 initiatives across six areas. It includes a phased rollout of home insurance against natural disasters and fully remote payouts (lsm.kz). The reforms will also cover pension products, medical insurance and business protection.
What happened
The Agency for Regulation and Development of the Financial Market and the National Bank have jointly adopted a five-year plan to modernise the sector. The regulators want to strengthen insurance protection for people in Kazakhstan.
One part of the plan covers compulsory home insurance against earthquakes. Coverage is also expected to extend to floods and forest fires. The rollout is set to begin with a pilot in three regions, before expanding to 16 regions exposed to catastrophic risks.
The regulators will also consider expanding medical insurance for foreign tourists and agricultural insurance. The plans include property insurance against fires and cover for businesses’ liability to consumers for certain risks.
What this means for customers
The regulators want to make insurance payouts fully remote. Under the plan, individuals and businesses would be able to manage their insurance details online and receive payments without visiting an office.
Insurance marketplaces are intended to make it easier to compare policy prices and terms. Reforms to the way agents and brokers operate would require them to disclose their commissions.
Pension products and medical insurance
The plan calls for the development of pension annuities with guaranteed payments and investment-linked products to provide additional retirement income. Hybrid annuities are also included. The aim is to give customers a choice based on their need for steady payments and their investment options.
The regulators plan to develop voluntary medical insurance as additional protection alongside compulsory social health insurance.
Changes planned for businesses
Small and medium-sized businesses have been promised new insurance products. These are intended to cover the risks of unexpected expenses and business interruptions. The plan also includes developing insurance based on Islamic finance principles.
The regulators plan to make it easier for reliable foreign insurers with high credit ratings to enter Kazakhstan’s market. They also intend to move insurance supervision to the international Solvency II standard.
The main package of reforms is expected to be included in a new law, “On the Insurance Market”.
