Kyrgyzstan: President signs amended home insurance law introducing takaful
Source: Middle East Insurance Review | Sep 2026
The President of Kyrgyzstan, Mr Sadyr Japarov, has signed an amended law that introduces a mechanism for mandatory and voluntary home insurance based on Islamic insurance principles.
The coverage is to mitigate risks against fires and natural disasters. The amended “Law of the Kyrgyz Republic on Mandatory Insurance of Residential Premises Against Fire and Natural Disasters” was signed by the President on 24 July and will come into force six months after its official publication.
One key change is that insurance companies will no longer be able to issue voluntary home insurance policies if the homeowner does not hold a compulsory insurance policy or a takaful policy. Furthermore, a voluntary policy may only be used a supplementary cover beyond mandatory policy limits.
The amended law also provides for an insurance excess of up to 10% of the sum insured. This is the portion of the loss that the insurer does not reimburse the homeowner. The amount will depend on the class of the property and the quality of construction. The procedure for assessing these parameters must be approved by the Cabinet of Ministers.
In addition, the amended law clarifies what constitute ‘insured events’. Compensation will be provided for damage to a home resulting from:
- fire, exposure to smoke and high temperatures;
- water ingress during fire-fighting operations;
- earthquakes measuring five or more on the Richter scale;
- mudslides and flooding;
- landslides or rockfalls;
- strong winds above a specified speed;
- severe snowstorms and hail;
- a direct lightning strike.
The demolition of a home and the relocation of its owners to a safe area, following a decision by a state body, is also recognised as an insured event if a natural disaster has posed a threat of the home’s destruction.
Another change concerns the creation of an insurance pool, which will be a legal entity. The pool will be liable for obligations arising under compulsory home insurance. All insurers authorised to operate in this branch will be required to join the insurance pool. M