As natural disasters increasingly threaten communities worldwide, lawmakers in both the United States and Kazakhstan are taking significant steps to enhance flood and disaster insurance protections for homeowners. In the U.S., Democratic U.S. Representative Jared Moskowitz is championing an extension of the National Flood Insurance Program (NFIP), while Kazakhstan is proposing mandatory insurance for residential properties against natural disasters.
In the U.S., the NFIP is set to expire on September 30, 2025, a looming deadline that has prompted Moskowitz to act. With over 5 million policyholders nationwide, including approximately 1.7 million in Florida alone, the NFIP provides crucial flood insurance coverage to homeowners, especially as standard homeowners’ insurance typically does not cover flooding. Moskowitz, who has a history of advocating for disaster-related issues, is one of six cosponsors of a bill aimed at extending the NFIP through 2026. He stated, “With hurricane season around the corner, Florida homeowners and businesses deserve certainty that the flood insurance policies they’ve paid into will be there when disaster strikes.”
The bill, officially known as the National Flood Insurance Program Authorization Extension Act, is spearheaded by Democratic U.S. Representative Troy Carter from Louisiana. Alongside Moskowitz, other cosponsors include Democratic Representatives Cleo Fields, LaMonica McIver, and Marc A. Veasey, as well as Republican Representatives Julia Letlow and Mike Ezell. This bipartisan effort reflects a growing recognition of the importance of flood insurance, especially in states like Florida that are prone to hurricanes and flooding.
Moskowitz's commitment to disaster preparedness is further underscored by his previous role as Director of Florida’s Division of Emergency Management. His recent collaboration with Republican U.S. Representative Byron Donalds at the Department of Homeland Security highlights his active engagement in securing federal relief for communities affected by natural disasters, particularly in light of the devastating storm season Florida experienced in 2024.
On the other side of the globe, Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDF) is introducing a draft law aimed at mandating insurance for residential properties against natural disasters. The proposed legislation comes as a response to the alarming statistic that roughly 75% of Kazakhstan’s territory is vulnerable to natural hazards, yet only 3.2% of the country’s housing stock is currently insured. In Almaty, the largest city and a high-risk seismic zone, the coverage rate is even lower, at just 7.7%.
The ARDF believes that compulsory insurance will provide a legal safety net for regions most exposed to disasters, thereby reducing fiscal pressure on the state. The proposed insurance policy would be regionally tiered based on risk levels and priced between 1,000 and 20,000 KZT (approximately $2 to $40) annually, similar to current property tax rates. Initially, payouts would cover urgent needs up to 10 million KZT (about $20,000), with future provisions extending to repair costs or the purchase of new housing for affected residents.
To ensure that the policy is accessible, the draft law includes plans for subsidies for socially vulnerable populations. Moreover, the ARDF envisions establishing a dedicated state insurance organization to manage premiums and compensation disbursement, thereby accelerating post-disaster housing reconstruction and alleviating budgetary strain.
This initiative draws lessons from Turkey, which has implemented a similar system since 2000. National Bank analyst Janibek Asylbekov highlighted the parallels between the two countries in terms of natural and geographic risks, noting that Turkey’s compulsory insurance covers private homes and apartment buildings, with the state playing a central role through an insurance fund that collaborates with private firms.
Asylbekov emphasized the importance of leveraging digital technologies to streamline insurance processes, suggesting integration with routine systems such as utility billing. He also pointed out the need for public outreach, citing Turkey’s collaboration with its Ministry of Education to promote awareness among schoolchildren about the importance of insurance. To ensure accessibility, he recommended setting modest initial premiums that vary by region based on local income levels and risk exposure.
As both the U.S. and Kazakhstan grapple with the increasing frequency and severity of natural disasters, the legislative efforts to enhance insurance protections reflect a proactive approach to safeguarding communities. In the U.S., Moskowitz’s push for the NFIP extension underscores the urgent need for flood insurance as hurricane season approaches. Meanwhile, Kazakhstan’s proposal for mandatory insurance demonstrates a commitment to establishing a comprehensive safety net for its residents against the backdrop of significant natural hazards.
With the NFIP set to expire soon, Moskowitz’s call for action resonates strongly, especially as he advocates for reforms to lower costs for policyholders while ensuring the program's solvency. “The NFIP needs reform to lower costs for policyholders and be kept solvent, but it’s too important to let lapse,” he remarked, emphasizing the critical role of flood insurance in protecting vulnerable communities.
In conclusion, as these legislative measures unfold, the focus on disaster insurance highlights the increasing recognition of the need for robust protections against natural disasters. Both U.S. and Kazakhstani lawmakers are taking essential steps to ensure that their citizens have the necessary coverage to weather the storms ahead.
