Kazakhstan rolls out major reforms in insurance sector

Kazakhstan is currently working on integrating its unified insurance database with government agencies, Meruert Bayetova, department head at the Agency of Kazakhstan for Regulation and Development of Financial Market, said during the Turkic States InsurTech Summit 2025 in Baku, Report informs.

Bayetova highlighted that integration has already been achieved with the databases of 38 government institutions, which facilitates more efficient use of insurance products and optimization of reporting.

"The regulatory authority is working continuously to improve reporting and develop a balanced risk assessment system. The goal is to evaluate risks accurately without placing an excessive burden on businesses. In this direction, we are implementing our internal assessment system," the official added.

According to her, the system is fully digital and automated: "It enables deep analysis of insurers' financial indicators, a risk-oriented approach, targeted allocation of resources to more sensitive risk areas, and prompt regulatory decision-making."

She stated that one of the regulator's key initiatives is the creation of a mandatory property insurance system for citizens. Kazakhstan's exposure to natural disasters such as earthquakes, floods, mudslides, and forest fires increases the relevance of this issue.

"This system is being developed with support from the Asian Development Bank (ADB). The project is currently under discussion and will be mandatory for regions with high natural disaster risk," Bayetova said.

The official also mentioned that the regulator is tasked with improving the Bonus-Malus system: "One of the development trends in Kazakhstan's insurance market is the expansion of life insurance products. The regulatory authority has taken important steps toward implementing social benefits for workers in hazardous conditions. At the same time, modified insurance types are also being actively developed.

Work is underway to insure the professional liability of notaries, lawyers, private bailiffs, and legal consultants. For this purpose, unified insurance pools have been created. These pools aim to redistribute insurance risks and expand market capacity."

She noted that two such pools are already operating in Kazakhstan-one for the professional liability of medical workers and another for mandatory insurance of enterprise employees.

Bayetova continued: "At the same time, types of insurance guarantees are being gradually expanded. The regulatory authority has also done significant work in developing insurance products. One of the latest products is the pre-retirement annuity insurance. An online training system for actuaries has been created under the Insurance Payments Guarantee Fund based on a minimum curriculum."

"Also, a unified data aggregator has been developed under the fund, combining information on all insurance organizations, products, and services. This platform allows citizens to compare insurance products and choose the most suitable option," she added.

Bayetova further mentioned that initiatives are being implemented to develop digital insurance brokers. "The goal is to expand insurance coverage among the population and increase public trust in insurance," she said.

Regarding digital transformation, Bayetova stated that insurance contracts are now concluded online in Kazakhstan, and claims can also be processed online. She said: "The first digital product is called Europrotocol. This system ensures that claims are reviewed and payments are made within 5–6 business days. Before this product was introduced, the process used to take 1–2 months."

She added that a personalized tariff system for compulsory motor liability insurance has also been introduced based on the unified insurance database.

Kazakhstan's insurance market currently includes 25 insurance companies, 10 of which specialize in life insurance. In addition, 13 insurance brokers and 68 actuaries operate under licenses issued by the regulatory authority.

The Insurance Payments Guarantee Fund has been active since 2003. The Insurance Ombudsman institution and the unified insurance database were introduced in 2008. The Kazakhstan Society of Actuaries has been a full member of the International Actuarial Association since 2014.