Kazakhstan's Market Remains Tough for Azerbaijani Insurance Firms

Chairman of the Kazakhstan Insurers Association Vitaliy Veryovkin has said that over the next five years, the entry of Azerbaijani insurance companies into Kazakhstan’s market appears challenging.

Veryovkin noted that Kazakhstan maintains a very strict regulatory environment and high capital requirements, The Caspian Post reports via local media.

“Regulators assess not only the insurers’ own capital but also the capital of any companies in which they have stakes. At this stage, establishing cooperation in this area is difficult,” he explained.

While Azerbaijani firms could theoretically launch insurance operations in Kazakhstan, the process would involve complex procedures.

“The key requirement is capital transparency. Every manat and every cent must be accounted for. This can take years. But if there’s genuine interest, why not?” Veryovkin said.

He added that Kazakh insurers are closely watching Azerbaijan’s innovations, particularly in digitalization and automation.

“We could exchange experiences in IT and unconventional solutions for the insurance market. We’re especially curious about how new technologies are being integrated into insurance. Perhaps the solution we’re missing already exists in Azerbaijan,” he noted.

Veryovkin also commented on the potential for a unified international insurance model. “For a large insurer operating across borders, this is only feasible through a special agreement between our countries. Ultimately, it depends on political will and mutual decisions. If there’s desire, such a model can work.”