KAZAKHSTAN: insurance against natural disasters will be introduced

29 January 2024 — Marina MAGNAVAL
Insurance against natural disasters will be introduced in Kazakhstan. The Agency for Regulation and Development of Financial Market is working on the introduction of catastrophe bonds together with the World Bank, 24kz writes.

This tool is widely used in the insurance markets of the USA and European countries. In Kazakhstan, 75% of the territory is exposed to high risks of natural and man-made disasters, so such an insurance product has been needed for a long time, experts say.

On the night of January 23, residents of Almaty and a few other regions of Kazakhstan felt tremors, which were the result of a strong earthquake that occurred on the border of China and the Kyrgyz Republic. The earthquake in Almaty reached 5 points. There were no victims or destruction, but such events do not happen often in Almaty, so some citizens panicked and tried to leave the city.

The earthquake that took place in Almaty provoked an increase in the number of night trips and even traffic jams, which also let to an increase in claims from insured persons whose cars were damaged in road accidents, the Eurasia company reported. As noted by the insurer’s press service, the number of claims from citizens whose cars are insured under MTPL or Motor Hull in Almaty, Almaty region and Shymkent doubled on the night of January 22-23 compared to other similar periods with comparable weather conditions.

The insurance company NOMAD also noted an increase in requests from clients for property insurance contracts against earthquakes influenced by this event.