Central Asia Insurance Solutions for a Safer Future

In Central Asia, insurance solutions are becoming increasingly important for a safer future. The region's growing economy and increasing urbanization have led to a higher demand for insurance products.

The Kazakhstani government, for instance, has introduced a number of insurance-related regulations to enhance consumer protection and promote a culture of risk management.

Insurance companies in Central Asia are now offering a range of products tailored to the region's specific needs, including motor insurance, health insurance, and property insurance.

These products are designed to provide financial protection against unexpected events, such as car accidents, illnesses, or natural disasters.

Kazakhstan's lack of protection against natural catastrophe risks has been exposed by recent earthquakes in the country. The city of Almaty has experienced a series of strong earthquakes this year, including a 7.0 magnitude earthquake in January.

The earthquakes have left the city and its residents unprepared to face such risks, despite being located in a seismically active zone. The last devastating earthquake that almost destroyed Almaty was over 100 years ago, in 1911.

The government is now working with the World Bank to introduce insurance against natural disasters, potentially launching NatCat bonds this year to transfer the risk from its people and government to the reinsurance and capital markets.

In Kazakhstan, a series of strong earthquakes has made it clear that the country needs urgent measures to protect its citizens against natural catastrophe risks.

The recent earthquakes in Kazakhstan, particularly in Almaty, have highlighted the lack of preparedness and insurance protection for its citizens.

Almaty, the largest commercial city in Kazakhstan, has experienced a series of strong earthquakes since the beginning of the year, with a 7.0 magnitude earthquake occurring in January and a 5.0 magnitude earthquake in March.

The country's seismically active zone makes it prone to such extreme events, and it's surprising that the city government and residents haven't prepared for such risks despite the devastating earthquake in 1911 that almost destroyed the city.

The government is taking steps to address this issue by working with the World Bank to potentially launch NatCat bonds this year to transfer the risk from its people and government to the (re)insurance and capital markets.

The region of Central Asia is particularly vulnerable to NatCat risks, with the majority of its countries located in a seismically active zone.

The region's geography is characterized by mountain ranges, which can amplify the impact of earthquakes.

The Kyrgyzstan earthquake of 1915 is one of the deadliest in the region's history, with over 3,000 people killed.

The 1992 Uzbekistan earthquake caused widespread damage to buildings and infrastructure, resulting in over 10,000 casualties.

The region's infrastructure is also at risk due to flooding, with the 2019 Uzbekistan floods causing significant damage to crops and homes.

The country's reliance on agriculture makes it particularly susceptible to crop damage from natural disasters.

In Kazakhstan, Uzbekistan, Azerbaijan, and Georgia, a reinsurance pool called Turan has been established to provide international reinsurance facilities.

The pool is managed by insurance brokers from the American Marsh & McLennan Companies.

The participating countries have designated private insurance companies to represent them in the pool, including Halyk from Kazakhstan, Apex Insurance from Uzbekistan, AzRe Reinsurance from Azerbaijan, and Aldagi from Georgia.

Insurance premiums and losses will be paid in the policy currency, with payments between non-residents made in US dollars.

In Kazakhstan, Silk Road car insurance is a popular option for travelers and locals alike, offering coverage for up to 30 days.

You can buy Silk Road car insurance online or in person at a local insurance office, making it a convenient option for those on the go.

This type of insurance is specifically designed for the Silk Road route, which spans across several Central Asian countries, including Kazakhstan, Uzbekistan, and Kyrgyzstan.

The policy covers accidents, theft, and damage to your vehicle, as well as liability for third-party damages or injuries.

The cost of Silk Road car insurance varies depending on the type of vehicle, driver's experience, and other factors, but it's generally affordable.

Some policies even include additional benefits, such as roadside assistance and emergency medical coverage.

It's worth noting that Silk Road car insurance is not mandatory, but it's highly recommended to protect yourself and your vehicle from unexpected expenses.

A reinsurance pool has been created by insurers in Kazakhstan, Uzbekistan, Azerbaijan, and Georgia, known as Turan. This international facility aims to provide a quota or priority line for a wide range of products across all regions of the participating countries.

The pool will be managed by insurance brokers, specifically the American Marsh & McLennan Companies. The scope of the project is quite broad, covering areas such as construction, traditional and green energy, financial lines, fleet, aviation, and property and civil liability risks.

The priority line for the pool is capped at $5 million, while the quota line is limited to $40 million, with plans to increase it to $50 million by July 2024 and up to $100 million by December 2024.