Kazakhstan to introduce mandatory home insurance

Kazakhstan is preparing a law on mandatory property insurance. The new system предполагает that responsibility for the protection of housing will be partially shifted from the state to property owners.

The initiative focuses on insurance against natural disasters. The draft law is currently being developed at the regulator level and may be submitted to the government in 2026.

The initiative is linked to a reassessment of the state’s role in compensating damage after emergencies.

Currently, a significant share of expenses from major natural disasters is covered by the state budget. The new approach introduces a multi-level model where funding sources are distributed between the state, international financial instruments, and property insurance held by citizens.

The model has been developed with the participation of the Asian Development Bank and the World Bank.

The draft law provides for mandatory insurance of registered housing in regions with elevated natural risks. Coverage will include earthquakes, floods, seasonal flooding, and wildfires. In total, the system is expected to cover 16 regions.

A single operator will also be established — a state entity that will collect contributions, manage payouts, and ensure the system’s stability.

The contribution is expected to be set at the level of property tax — from ₸2,000 to ₸20,000 per year. At the same time, a significant level of compensation is предусмотрен: in the event of an insured case, payouts may reach up to 500 times the contribution. This means about ₸1 million at the minimum payment and up to ₸10 million at the maximum.

The draft law предусматривает participation of private insurance companies. To distribute risks, a unified reinsurance pool will be created, where contributions from insurance premiums will be directed. This will allow the system to remain stable even in large-scale disasters affecting entire regions.

The rollout will be phased. As a pilot, the system will be tested in Almaty, Shymkent, and the Zhambyl region, after which it will be expanded to all 16 regions.

The project is at the preparation stage and requires significant changes to legislation. This includes amendments to several codes and laws.

According to the current timeline, the package of documents is expected to be submitted to the government in June 2026 and then forwarded to Parliament in August.