Moody's Ratings has assigned a positive outlook to Kazakhstan's non-life insurance sector, reflecting favorable macroeconomic conditions, a strengthening regulatory environment, as well as high overall profitability, significant capitalization, and a high-quality investment portfolio of insurers, according to Allinsurance.kz.

It is noted that in 2026–2027, sustainable economic growth, rising disposable incomes, and further expansion of compulsory insurance will have a positive impact on the sector's development.

Moody's expects premium growth in the non-life sector to exceed 20% in 2026, driven by economic growth and rising household incomes, which will stimulate demand for both corporate and retail insurance products. Compulsory types of insurance, which began to be introduced last year, will also contribute to market expansion.

Insurers' overall profitability will remain relatively high in 2026, with the agency expecting the average return on equity to exceed 20%. This will be driven by premium growth, stabilization of losses thanks to improved underwriting and reduced inflationary pressure, control over expenses, and investment income.

Kazakhstani insurers' investment strategy is conservative: over 70% of assets are placed in investment-grade instruments, primarily government and quasi-government bonds, as well as investment-grade bonds of banks and corporate issuers.

Capitalization of the non-life sector remains strong. In 2025, total equity increased by 17%, and the average solvency margin ratio was approximately 360%.

The regulatory environment and government initiatives are generally having a positive impact on the insurance market development, strengthening its long-term growth potential and financial stability. The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market is introducing new compulsory types of insurance and is consistently implementing a set of regulatory reforms, including the IFRS 17, transition to risk-based supervision, introduction of risk-based capital requirements, strengthened corporate management requirements, and introduction of mandatory annual risk assessment procedures. Taken together, these measures bring Kazakhstan's insurance sector regulation closer to the European Solvency II regime and will strengthen supervision over insurers' solvency, risk management quality, and capital adequacy, the source writes.