The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has proposed mandatory insurance for registered homes against earthquakes, floods and naturally occurring forest fires. Included in the draft Insurance Market Development Program through 2030, the system would initially operate as a pilot in three regions before expanding to 16 regions. Annual premiums would range from about KZT 2,000 to KZT 20,000 based on regional risk, with initial payouts equal to 500 times the contribution and made within five days after an event is confirmed. A new Mandatory Home Insurance Fund would collect contributions, establish reserves, arrange payouts and reinsure catastrophe risks. The proposal includes a three-year deferral period during which the fund would accumulate capital from equity and reinsurance premiums, after which homeowners would begin paying mandatory annual premiums. Initial payouts would cover victims’ immediate expenses, with larger payments for repairing or replacing homes potentially introduced as funds accumulate. The proposal would also require all voluntary property insurance contracts to cover catastrophe risks. Insurers would transfer part of the premium to the fund under reinsurance arrangements, allowing voluntarily insured homeowners to receive a fixed fund payment in addition to compensation from their insurer.

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