The rate of property insurance in our country does not exceed 2%. This is what insurance companies in the country say. According to UN data, the number of earthquakes, floods, droughts, and storms worldwide has doubled in the last 20 years. Seventy-five percent of the population of Kazakhstan lives in areas with a high risk of natural disasters.
In response to an official inquiry from the Financial Market Regulation and Development Agency (FMRDA), it was noted that work is currently underway to make final decisions based on the parameters of this model.
“After the final decisions are made, legislative amendments will be developed to introduce insurance against natural disasters,” said the FMRDA.
The model itself aims to cover four types of risks in the regions of Kazakhstan that are more prone to natural disasters. These include earthquakes, floods, landslides, and forest fires.
“At the same time, issues regarding the final list of reimbursable risks and regions covered, as well as the frequency of insurance, will be determined based on the comprehensive assessment results of the risks of natural disasters,” clarified the FMRDA.
Additionally, it is proposed to implement registered payments to homeowners whose properties have been fully or partially damaged by disaster risks without conducting an assessment.
Furthermore, the financial regulator reminded that insurance operates on the principles of mutual assistance and redistribution. Therefore, payments will be made from funds collected from all participants. Discussions about the necessity of introducing mandatory protection against natural hazards began in 2023. The city of Almaty, located in a seismically hazardous area, frequently experiences earthquakes. Experts state that the number of applications for voluntary property insurance has increased following the strong tremors that occurred at the beginning of the year. However, in relation to the city's population, this remains a very low figure. Although property insurance is a widely adopted service around the world, demand remains low in Kazakhstan. Nevertheless, experts say that the cost of insurance is not excessively high.
According to Bakyt Korgasbaev, the deputy director of the Eurasia Insurance Company, insuring property amounts to approximately 0.2% of its value. If your apartment costs 20 million tenge, the insurance cost would be around 20,000 tenge.
In Kazakhstan, there are over 3,700 hazardous and old buildings scheduled for demolition by 2029. Experts frequently mention that complaints from citizens who have built on unauthorized land and later demanded compensation from the state do not fall within the legal framework. Therefore, it is essential to tighten the regulations not only for the public but also for the responsible entities that allowed the construction of those buildings on unauthorized land.
According to the agency's data, out of 54,700 multi-story residential buildings, 752 structures are in a hazardous condition, and over 3,000 are old buildings.
The majority of hazardous constructions are found in Astana (208 units), while dilapidated buildings are observed in Almaty (1,200 units). Moreover, in the southeastern megapolis, there are no hazardous houses, with only over 1,000 old houses present. However, it is important to note that more than 8,000 multi-story residential buildings have been constructed in Almaty and 3,100 in Astana.