Agriculture is a very importantsocioeconomic sector in Kazakhstan. The Government of theRepublic of Kazakhstan (GRK) introduced a nationalcompulsory crop insurance scheme in 2005 in order to providegrain producers and other farmers with a minimum level ofprotection against catastrophic climatic events. The overallobjective of the current study is to assist the GRK inimproving the existing mandatory crop insurance program. Thestudy aims to identify sustainable market-based alternativesto the current crop insurance system in Kazakhstan. In thisregard, all of the options for improving the current systemthat were developed under this study are market based andtake into account global experience and the best insuranceand reinsurance industry practices for agriculturalinsurance. The study follows the principles established inthe agriculture risk management framework developed by theWorld Bank. The study focuses mainly on spring wheat cropproduction in the principal growing regions of Kazakhstan.The study is set out in six chapters. Chapter one givesintroduction and objectives of the study. Chapter twopresents an overview of agricultural production systems andmarkets in Kazakhstan, followed by an assessment of theclimatic hazards and other risks affecting spring wheat inthe country s main crop areas. Chapter three reviews thestructure and performance of the current mandatory cropinsurance system in Kazakhstan and identifies a series ofinstitutional, operational, technical, and financialdrawbacks of the current system. Chapter four presents aphased strategy and a series of options and recommendationsfor the GRK to consider for the introduction of market basedsolutions that aim to strengthen the current scheme. Chapterfive explores the opportunities for developing new cropinsurance products in Kazakhstan, including prefeasibilityanalyses for area-yield index insurance (AYII), weatherindex insurance (WII), and named-peril hail insurance forselected rayons. Finally, chapter six deals with thechallenges of tailoring crop insurance to the needs oflower-income smaller farmers.