Agricultural insurance in the Republic of Kazakhstan: modern approaches and prospects for expansion

The purpose is a theoretical and methodological substantiation of the need to improve the insurance strategy for the sustainable development of the agrarian sector in Kazakhstan.

Methods — economic-statistical, analytical, assessment and comparison methods in addressing issues of insurance coverage of perennial plantations, and comparison of insurance contract policies of different countries.

Results — the insurance protection mechanism implemented by the Ministry of Agriculture of the Republic of Kazakhstan in the agro-industrial complex is considered. Modern theoretical approaches to the assessment of insurance services in agro-industrial production are studied. A comparative analysis of domestic and foreign practices in applying insurance services in the AIC is carried out. The relevance of optimizing public administration methods in the agricultural insurance system and increasing the trust of agricultural entities in insurance activities is demonstrated. The role of digital technologies that consolidate state programs of financial assistance and support for agribusiness, including under conditions of global socio-political and economic processes, is revealed. Arguments are presented regarding the impact of insurance instruments on ensuring transparency in the allocation and use of budgetary funds. Recommendations for modernizing the insurance structure in the agrarian sector are provided.

Conclusions — at present, individual elements of digital transformation widely used in international practice are being implemented. It is important to strengthen the participation of “National company “Food contract corporation” JSC in the context of increasing its potential and expanding opportunities to provide comprehensive budgetary support to agricultural producers. Measures to ensure the safety of the agricultural sector, including expenses for subsidizing insurance premiums, are insufficient and require the development of a concept of state investment in the agrarian sector with coverage of households. The effectiveness of the proposed measures can be achieved by ensuring information activities, training based on real cases with the involvement of practitioners and subsequent support, and strengthening farmers’ confidence in the practical effect of state initiatives. A coordinated approach to regulating the insurance market and effective ways to reduce negative consequences are of decisive importance and contribute to risk prevention.

1. Zakon Respubliki Kazahstan ot 28 oktjabrja 2019 goda №268-VI «O vnesenii izmenenij i dopolnenij v nekotorye zakonodatel'nye akty Respubliki Kazahstan po voprosam regulirovanija agropromyshlennogo kompleksa i strahovanija» [Law of the Republic of Kazakhstan No. 268-VI dated October 28, 2019 "On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on the Regulation of the Agro-Industrial Complex and Insurance"] (2019). Available at: https://www.adilet.zan.kz/rus/docs/Z1900000268 (date of access: 03.09. 2025) [in Russian].

2. Indeksnoe strahovanie polej ot izbytka vlagi [Index insurance of fields from excess moisture] (2025). Available at: https://www.qalqan.kezekte.kz/ru/insurance-product/index/info/index-excess-start (date of access: 03.09.2025) [in Russian].

3. Opyt Rossii i drugih stran: kak zashhitit' APK ot klimaticheskih riskov. RBK+ [Experience of Russia and other countries: how to protect the agro-industrial complex from climate risks. RBC+] (2025). Available at: https://www.chr.plus.rbc.ru/news/684057627a8aa989ee638545 (date of access: 03.09.2025) [in Russian].

4. Turysbek, A.K. (2023). Agricultural insurance system: review of the experience of developed countries. Problemy agrorynka Problems of AgriMarket, 2, 158-166 [in English].

5. Analiz sistemy strahovanija sel'skohozjajstvennyh kul'tur v Uzbekistane. Centr jekonomicheskogo analiza i normirovanija Respubliki Karakalpakstan [Analysis of the system of crop insurance in Uzbekistan. Center for Economic Analysis and Standardization of the Republic of Karakalpakstan] (2024). Nukus: Centr jekonomicheskogo analiza i normirovanija Respubliki Karakalpakstan, 90 [in Russian].

6. Postanovlenie Pravitel'stva RK ot 30 dekabrja 2021 goda №960. Koncepcija razvitija APK RK na 2021-2030 gg. [Resolution of the Government of the Republic of Kazakhstan No. 960 dated December 30, 2021. Concept of development of the agro-industrial complex of the Republic of Kazakhstan for 2021-2030] (2021). Available at: https://www.adilet.zan.kz/rus/docs/P2100000960 (date of access: 05.09.2025) [in Russian].

7. Analiz tekushhej situacii i podgotovka rekomendacij po sovershenstvovaniju instrumentov strahovanija v agrarnom sektore Kazahstana. Analiticheskij ochet Germano-Kazahstanskogo agrarno-politicheskogo dialoga [Analysis of the current situation and preparation of recommendations for improving insurance instruments in the agricultural sector of Kazakhstan. Analytical report of the German-Kazakh Agricultural Policy Dialogue] (2021). Astana: AgroInsurance International LLC, 21 [in Russian].

8. Zakon Respubliki Kazahstan ot 8 ijulja 2005 goda №66 «O gosudarstvennom regulirovanii razvitija APK i sel'skih territorij» [Law of the Republic of Kazakhstan No. 66 dated July 8, 2005 "On State Regulation of the Development of the Agro-Industrial Complex and Rural Territories"] (2025). Available at: https://www.adilet.zan.kz/rus/docs/Z050000066_/z050066.htm (date of access: 04.09.2025) [in Russian].

9. Kantarbaeva, Sh.M., Zhanyrbaeva, A.N., Iburaev, S.S. (2019). Cifrovizacija v agrarnom sektore Kazahstana: riski i puti ih preodolenija [Digitalization in the agricultural sector of Kazakhstan: risks and ways to overcome them]. Problemy agrorynka Problems of AgriMarket, 1, 84–90 [in Russian].

10. Koenig, R., Brunette, M. (2024). Climate change perception, impact, and adaptation of French farmers: implications for crop insurance development. Review of Agricultural, Food and Environmental Studies, 105 (4), 333-369 [in English].

11. Zhang, Zh., Xu, H., Shan, Sh., Liu, Q., Lu, Y. (2022). Whether the agricultural insurance policy achieves green income growth-evidence from the implementation of China's total cost insurance pilot program. International Journal of Environmental Research and Public Health, 19 (2), 852. https://www.mdpi.com/1660-4601/19/2/852 [in English].

12. Kurdyś-Kujawska, A. (2018). Determinants of Voluntary Insurance in Agriculture. Annales Universitatis Mariae Curie-Skłodowska, sectio H-Oeconomia, 52 (1), 109-118. https://journals.umcs.pl/h/article/view/5375/5103 [in English].

13. Nafi'ah, B.A. (2022). TOWS Analysis of Agricultural Insurance in the Application of a Green Economy. Nusantara Science and Technology Proceedings, 24 (1), 148-153. https://doi.org/10.11594/nstp.2022.2425 [in English].

14. Torres, P., Augusto, M. (2020). Digitalisation, social entrepreneurship and national well-being. Technological Forecasting and Social Change, 161 (4), 120279. https://doi.org/10.1016/j.techfore.2020.120279 [in English].

15. Agricultural Price Index (2022). Available at: https://www.ibisworld.com/us/bed/agricultural-price-index/4182/ (date of access: 12.09. 2025) [in English].