As NBT said, this additional investment was made following the requirements of the decree of the Uzbek government, according to which the minimum charter capital for insurance (reinsurance) organizations, depending on the forms and segments of insurance, until April 1, 2021, should have been: at least TJS 10 million for state insurance organizations and non-governmental organizations providing, along with other insurance types, compulsory insurance; at least TJS 5 million for non-governmental insurance organizations providing only "general insurance" and "life insurance"; at least TJS 2 million for non-state insurance organizations working only in "general insurance"; at least TJS 50 million for state and non-state reinsurance organizations.
NBT noted earlier that insurance penetration into the economy of Uzbekistan is one of the lowest in the world (only 0.74% of GDP). As the regulator explained, this indicator directly depended on the low requirements for charter capital. In addition, the development of the insurance market is hampered by imperfection of the legal framework governing the insurance market; low financial stability; insufficient level of requirements for charter capital; distrust of the population in insurance; low level of financial literacy; outdated technological equipment of the organizations; and weak corporate management.
According to the NBT, the number of insurance organizations in the republic's market at the end of the first half of 2021 was 19, their total assets amount to TJS 513.6 million, which is 28.1% more y-o-y. The share of insurance penetration into the country's economy at the end of June 2021 already reached 1.3% of GDP.
*at the following exchange rate:
1 EUR = 13.4550 TJS (30.06.2021)
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