UZBEKISTAN: in 2018 life paid claims jumped by 337% y-o-y

7 March 2019 — Marina MAGNAVAL
Based on the market results for 2018 life GWP were 3 times higher y-o-y and increased to UZS 417.2 billion. At that life paid claims demonstrated an extremely rapid growth (+337.1%) to UZS 264 billion, as UzReport wrote.

According to the market specialists, over the past 2 years there has been a significant increase of the life insurers' activity mainly in universal life insurance. The major reason for such growth is favorable tax conditions for individuals in cases of long-term life insurance.

In 2018 the local life sector was represented by 6 companies. At that the major part of GWP and paid claims were generated by four of them, while the other two started operations only in the second half of the year. Based on 2018 results, New Life Insurance was the leader of the sector in terms of GWP (UZS 159.9 billion), followed by Agros Hayot and O'zbekinvest Hayot (UZS 129.6 billion and UZS 101.2 billion accordingly). Alfa Life took the 4th place with GWP of UZS 24.4 billion. The shares in total life GWP of the three leaders amounted to: New Life Insurance - 31.1%, Agros Hayot - 38.3% and O'zbekinvest Hayot - 24.3%.

The loss ratio of the sector in 2018 amounted to 63.3%. The main part of the life paid claims (93.2%) was distributed between: New Life Insurance (37.4%), Agros Hayot (30%) and O'zbekinvest Hayot (25.8%), according to the market report of the Department of Financial Analysis and Rating, Information/rating agency SAIPRO.

*EUR 1 = UZS 9413.74 (31.12.2018)

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