UZBEKISTAN: Asia Insurance: 2020 - a year of development for insurers

12 April 2021 — Marina MAGNAVAL
The 2020 crisis affected all spheres of the economy in one way or another. Some types of business fail completely, some, on the contrary, receive an additional incentive for development.

Despite the pandemic, the company was able to open new centers of insurance services in two regions of the Republic. This allowed creating new jobs in the regions, as well as gaining greater coverage among the local population and developing the insurance culture. As planned, the company managed to conclude new partnership agreements with foreign companies - together with TENGE BANK, Asia Insurance launched bancassurance; together with SWISS FINANCE leasing company and with the support of Export Insurance Company KazakhExport JSC (Kazakhstan) arranged affordable leasing of Hyundai and JAC cars.

In the first wave of the pandemic, due to introduction of the self-isolation regime, possibilities for remote sale and delivery of MTPL policies were expanded by increasing functionality of the website, developing a mobile application, and adding services to it. During the pandemic in the spring of 2020, hurricanes in some regions of the Republic, as well as the breach of the dam of the Sardoba reservoir in the Syrdarya region, caused significant property damage to individuals and small businesses. Insurance companies also played an important role in eliminating the consequences. Insurance indemnities were paid promptly and in full by Asia Insurance. Also, the company provided financial assistance to the victims who found themselves in a difficult situation.

2020 has become a "year of digital breakthrough" - insurers quickly transferred relations with clients, their own employees, and services, as well as with government agencies to online. The task of creating continuity in all parts of digital interaction with customers is being solved - from the sale of policies to loss settlement. This year, work in this direction will continue.

2021 on the MTPL market will be the year of e-policy. The tasks of optimization of electronic document circulation are being resolved, methods and standards for implementation of electronic policies are being worked out.

The year 2020 in the insurance market was of a wave nature due to the impact of anti-epidemic restrictions on the country's economy. Insurance companies, despite their social importance, were quarantined. Nevertheless, quarantine did not become destructive for the insurance market.

As you know, charter capital of a company is one of the main indicators of solvency and financial stability and an indicator of the level of capitalization and the ability to take insurance obligations. On March 2, 2021, charter capital of Asia Insurance was increased to UZS 29.9 billion. The increase in the capital of Asia Insurance became possible due to the results of work - net profit of Asia Insurance at the end of the 2020 amounted to UZS 24.5 billion.

Also, according to the results of Asia Insurance's activities for 2020, the highest solvency rating uzA ++ was confirmed by the Ahbor-Reyting National Rating Agency. In 2020, Asia Insurance concluded 162.8 thousand contracts for voluntary and compulsory types of insurance. There is a change in the insurance portfolio - a slight increase in property insurance, which adds stability to the insurance portfolio. It's worth mentioning voluntary property insurance, insurance of mortgaged property, compulsory motor insurance, agroinsurance. Due to increased attention of insureds to medical protection, the number of voluntary health insurance contracts decreased to 4% (vs 12% in 2019) of the total, while paid claims increased to 121.9%.

In terms of financial results, the past year was still not bad for the motor insurance market. In Motor Hull the company collected more than UZS 5.1 billion of GWP (vs UZS 4.9 billion in 2019). In 2020, the company collected over UZS 7.7 billion in MTPL segment, which is 6% less y-o-y. The loss ratio in 2020 was 37.79% (vs 14.21% in 2019). In 2019, the MTPL tariff corridor was reduced: the price now depends on a number of drivers and a region of registration. However, the amount of insurance coverage increased significantly.

Throughout 2020 the paradigm of consumer and client perception in the insurance market was changing. Digital services and mobile applications, new anti-COVID products and simplified customer actions - all these were focused on the interests of customers. Thus, the year of severe challenges for people turned out to be a year of development - both forced and voluntary - for insurers.

* at the following exchange rate:

1 EUR =12786.03 UZS (December 31st, 2020)

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