Market growth does not automatically eliminate underinsurance

Official data published by Kazakhstan’s financial regulator show continued expansion of the insurance sector during 2025. By September 2025, the country had 25 insurance organisations, including 10 life insurers. Sector assets reached KZT 3.7 trillion, while premiums collected from the beginning of the year reached approximately KZT 1.1 trillion.

These indicators demonstrate financial development, but corporate insurance quality depends on more than premium volume. Inflation, exchange-rate movements, imported equipment costs and longer replacement times can cause declared asset values to fall behind actual reinstatement costs. A property policy may therefore appear adequate while still leaving the insured with a material funding gap after a major loss.

Companies should validate sums insured using current replacement values rather than accounting book values. The review should include buildings, machinery, imported components, debris removal, professional fees and the cost of accelerating repairs.

Corporate risks are becoming more interconnected

Traditional policies divide risk into categories such as property damage, liability, cargo or cyber. Operational losses do not follow the same boundaries. A fire can damage machinery, interrupt production, delay customer deliveries, trigger contractual penalties and expose weaknesses in a supplier network. A cyber incident can stop both administration and physical production.

Corporate insurance programmes should therefore be tested as a connected system. The key questions are:

• Does business interruption coverage respond to the actual recovery period?
• Are critical suppliers and customers included in contingent business interruption analysis?
• Do cargo and property policies connect without a gap during temporary storage or transfer?
• Are cyber-triggered physical damage and technology failures clearly addressed?
• Are contractual liability and indemnity clauses aligned with the insurance programme?

This approach shifts the discussion from purchasing separate policies to protecting the company’s cash flow and continuity.

Reinsurance capacity remains essential for large risks

Large industrial, energy, aviation, infrastructure and commercial property exposures may exceed the amount that a single domestic insurer can retain. Reinsurance allows the risk to be distributed across several markets and can provide access to specialised engineering and claims expertise.

Capacity is not automatic. Reinsurers assess the quality of the underwriting submission, asset valuations, loss history, catastrophe exposure, fire protection, maintenance standards and business-continuity planning. Unclear information is generally treated as uncertainty, and uncertainty may result in higher pricing, larger deductibles, restrictive wording or reduced limits.

A strong submission should include a current risk survey, five-year loss information, an asset schedule, site plans, protection-system details, business-interruption calculations and a documented plan for addressing engineering recommendations.

The protection gap is a management issue

The most important protection gaps are often created before a policy is issued. Common examples include outdated values, short indemnity periods, undeclared locations, low sublimits, untested supplier dependencies and exclusions that conflict with the company’s real operating model.

Boards and finance teams should treat these gaps as retained risk. If a potential loss is excluded or exceeds the policy limit, the company is effectively financing that exposure from its own balance sheet. The decision may be valid, but it should be explicit, quantified and approved.

Priorities for insurance buyers in 2026

Corporate buyers can improve programme resilience by focusing on five actions:

1. Revalue major assets and imported equipment.
2. Model credible property and business-interruption loss scenarios.
3. Review policy wording, exclusions and sublimits rather than comparing premium alone.
4. Prepare underwriting information before approaching insurers and reinsurers.
5. Establish a claims protocol with responsibilities, evidence requirements and escalation contacts.

Conclusion

Kazakhstan’s insurance sector is growing, but the next stage of development will be defined by coverage quality and claims readiness. For corporate buyers, the objective is not simply to purchase a higher limit. It is to create an insurance programme that reflects current asset values, operational dependencies and the financial impact of a realistic major loss.

Kompetenz helps companies analyse exposures, prepare risks for the insurance and reinsurance market, negotiate policy wording and strengthen claims readiness.

Next step: Apply for a commercial insurance and risk programme review.