KAZAKHSTAN: property damage because of floods may exceed KZT 6 billion

9 April 2024 — Marina MAGNAVAL
As a result of recent floods in the west and north of Kazakhstan, property damage to the population may exceed KZT 6 billion (~EUR 12.43 million), Eurasia company said on its website.

Estimates made by Eurasia specialists include probable damage to real estate, lost and damaged property, including household items, transport, and agricultural equipment, as well as dead livestock of private individuals. Government agencies will have to make a separate assessment of the damage to infrastructure facilities: roads, bridges, railways, communication lines, power transmission and water supply, as well as state property.

The estimates are still preliminary based on data from the Ministry of Emergency Situations of Kazakhstan.

“Our estimates are conservative; the actual damage to citizens may be significantly greater. Unfortunately, in flooded areas there is an extremely low level of insurance coverage”, says Nurzhan Dzhantureev, deputy chairman of the company’s board. In total, less than 1% of real estate in the affected regions is insured.

“The flood emergency in the west and north of Kazakhstan once again raises a question of the need to develop and implement a mass compulsory insurance program against catastrophic risks throughout the country, as in many other countries. Unfortunately, high water quite often comes in the spring, and the state’s resources are not unlimited to eliminate all consequences at the budget expense every time”, added Nurzhan Dzhantureev.

*EUR 1 = KZT 482.73 (08.04.2024)