Since 2020, a new insurance system in agriculture has been operating in Kazakhstan. The key changes are: 1) transition from compulsory to voluntary insurance format; 2) transition to an online insurance format; 3) subsidizing 50% of the cost of the insurance policy. The members of the Kazakhstan Agricultural Insurance Association (insurance companies, Agroinshurans LLP and Malakut insurance broker) and such international partners as Swiss Re (Switzerland), Munich Re (Germany), Hannover Re (Germany) and Wandersat (Netherlands) developed index insurance products moisture in the soil, which is determined and monitored through satellite monitoring. Thus, according to the results of 2 years, 265,000 hectares were insured in the amount of $1.3 million, of which 50% was paid by the state. These 2 years in Kazakhstan there was a severe drought and payments to farmers amounted to more than 3 million dollars.

https://agro-insurance.qoldau.kz/ru/insurance-product

• Kazakhstan

• Remote and rural communities

After the positive experience of digital insurance using satellite monitoring, together with Swiss Re, it was decided to scale the project to other countries.

Kazakhstan as a lot of countries all over the world is located in the zone of risky agriculture, where 80% of the risk is drought. Also, in the conditions of global warming, this solution of insurance products is especially relevant.

This project reduces the weather risks of farmers and saves them from bankruptcy in the face of global warming.