The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has outlined planned reforms to compulsory motor insurance under the draft Insurance Market Development Program through 2030. Insurers would be allowed to price policies using individual risk scores based on claims history, driving behavior, traffic violations, driver characteristics and vehicle use. Scoring models would require prior testing and ongoing validation, while insurers would have to disclose the main pricing factors and allow customers to challenge risk assessments. Implementation would be phased, initially limiting the effect of scoring to 20% above or below the existing tariff. Once the models are validated, the regulator plans to introduce a unified tariff corridor within which insurers could set prices independently, with the corridor determined through independent actuarial assessment and regularly reviewed. A unified industry reference database for parts, materials and repair labor is also planned to standardize damage assessments and make claim payments more predictable. The reforms respond to a rise in the compulsory motor insurance loss ratio from 51% in 2021 to 106.8% in 2025, as claims payments increased 179% to KZT 106 billion.
2026-08-24Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan plans risk-based reform of compulsory motor insurance
Kazakhstan’s financial market regulator plans to introduce risk-based pricing for compulsory motor insurance, with safeguards requiring validated scoring models, pricing disclosures and appeal rights. Scoring would initially affect tariffs by no more than 20% in either direction before a unified tariff corridor is introduced. A common reference database would also standardize vehicle damage assessments and claim calculations.