Impact of climate risks on the development of insurance sector in the Republic of Tajikistan: international experience and recommendations.
https://doi.org/10.37493/2307-907X.2025.6.14
Abstract
Introduction. Climate change is becoming a key factor shaping the economic agenda of resource-dependent economies, including the Republic of Tajikistan. The vulnerability of agriculture and hydropower requires the urgent integration of climate risks into the financial protection system. Goal. The study aims to identify problems and develop practical recommendations for adapting the insurance sector of Tajikistan to climate risks based on the analysis of international experience. Materials and methods. The study is based on the analysis of the current state of the insurance market in Tajikistan, the regulatory framework, as well as a comparative analysis of successful international cases of climate risk management (Kenya, Bangladesh, the Caribbean). Methods of system and comparative analysis, synthesis and generalization were applied. Results and discussion. It was found that the insurance market of Tajikistan is characterized by low penetration (premium volume ~$28 million) and minimal cover age of agricultural risks (<1 %), despite their high importance. Insufficient use of modern technologies (only 12 % of companies use GIS) and regulatory gaps were identified. Based on international experience, the effectiveness of parametric insurance, catastrophe bonds (CAT bonds), and Islamic insurance models (takaful) for local conditions is substantiated. A set of recommendations is proposed, including the launch of pilot index insurance programs, the creation of a national climate data platform, and stress testing for insurers. Conclusion. The implementation of the proposed mechanisms will significantly increase the financial resilience of key sectors of Tajikistan economy to climate risks, ensure protection of income for vulnerable groups, and stimulate the development of the national insurance market. Institutional reforms and active international cooperation are necessary for successful implementation.
Keywords
climate risks,
insurance,
Tajikistan,
parametric insurance,
CAT bonds,
takaful,
adaptation,
resilience
About the Authors
Sh. Maksudzoda
State Unitary Enterprise Tajiksughurta
Таджикистан
Таджикистан
Shukhrat Maksudzoda – General Director
Zh. V. Pisarenko
St. Petersburg State University
Россия
Россия
Zhanna V. Pisarenko – Dr. Sci. (Econ.), Professor, Department of Risk Management and Insurance; Chairman of the Scientific Commission of St. Petersburg State University in the field of economics and business, Corresponding Member of the Russian Academy of Engineering (Moscow)
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Review
For citations:
Maksudzoda Sh., Pisarenko Zh.V. Impact of climate risks on the development of insurance sector in the Republic of Tajikistan: international experience and recommendations. Newsletter of North-Caucasus Federal University. 2025;(6):131-143. (In Russ.) https://doi.org/10.37493/2307-907X.2025.6.14
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