Kazakhstan plans to introduce mandatory housing insurance against natural disasters. This insurance will cover such risks as earthquakes, floods, high waters and forest fires, according to the advisory document of the regulatory policy, published on the portal "Open NPA (regulatory acts)", Kapital.kz reports.

The document was developed by the Agency for Regulation and Development of the Financial Market and will be in public discussion until May 12, 2025, Kapital.kz writes.

The first reason is that in case of catastrophic events, the existing compensation mechanisms in Kazakhstan are not enough to fully cover damage from disasters. “According to UNICEF, 75% of Kazakhstan’s territory is exposed to high risk of natural disasters, the most significant of which are earthquakes, floods, hurricanes, landslides, mudflows, epidemics, extreme temperatures and forest fires. Earthquakes pose the greatest threat”, the document says.

The second reason is low voluntary property insurance coverage in areas with a high level of catastrophic risks. In Kazakhstan, the share of coverage by such insurance does not exceed 3.2%. The third reason is low financial accessibility of this type of insurance.

To solve the problem of compensation for damage from catastrophic natural risks, Kazakhstan plans to develop a Law “On mandatory housing insurance against natural disasters”. It is proposed to create a State Insurance Organization, which will be a single operator in the segment.

It is planned to develop and adopt a legal framework for introduction of mandatory housing insurance against natural disasters in 2026, the source added.