UZBEKISTAN: in 2021, the insurance sector's share in GDP was about 0.5%

28 March 2022 — Marina MAGNAVAL
According to preliminary data, the insurance sector of Uzbekistan in 2021 grew by 68.6% y-o-y, exceeding UZS 3.7 trillion (~EUR 0.3 billion*), reports with reference to the agency for the development of the insurance market of Uzbekistan.

It is noted that the insurance market's share in Uzbekistan's GDP is relatively small and was equal to about 0.5% at the end of the year. However, it is expected that this indicator will increase to 0.8% in 2022.

Life insurance more than doubled - from UZS 334.4 billion to UZS 717 billion. Oybek KHALILOV, Chairman of the Board of Directors of the Association of Professional Participants in the Insurance Market of Uzbekistan, stressed that this growth is due to the recovery of the market after 2020, marked by the pandemic. So, if compared with 2019, the growth was 22.3%. In the total portfolio, life insurance occupies about 19%, and in terms of paid claims it leads (UZS 616.3 billion), which is more than half of the total amount of paid claims in the country. The life insurance sector is developing thanks to voluntary insurance.

In terms of growth rates, the second place in the market is occupied by voluntary general insurance, which, according to preliminary data, increased by 64.7%. It accounted for 68% of the market (UZS 2.5 trillion), as well as over a third of paid claims (UZS 433.7 billion). The first place in terms of growth in this segment is occupied by aviation risk insurance (UZS 9.66 billion, +470.4%). While UZS 1.5 billion (+487.8%) were collected in liability insurance of air carriers to individuals and legal entities.

The main LoB in voluntary general insurance is credit insurance, which accounts for 23.7% in the segment (over UZS 600 billion, +83.4%). The second place in terms of GWP belongs to insurance of motor vehicles (UZS 307.4 billion), the third - to general civil liability insurance (UZS 207 billion).

Non-life compulsory insurance brought 13% of market GWP (UZS 476.7 billion). Almost half was generated by civil liability insurance of vehicle owners (UZS 229.12 billion, +30.6%). Next comes civil liability of the employer (UZS 165.6 billion, +62.3%), in third place - insurance of construction and installation risks (UZS 42.11 billion, +63.6%).

As Oybek KHALILOV noted, the government of Uzbekistan expects that the share of the insurance sector in GDP will grow up to 0.8% in 2022 due to development of new LoBs. In 2021, a resolution "On additional measures to digitalize the insurance market and develop the life insurance sector" was adopted, according to which tax incentives are provided in insurance, which will accelerate development of long-term life insurance and will help expand the list of provided insurance services, according to the Chairman of the Board of Directors of the Association.

*EUR 1 = UZS 12224.88 (01.01.2022)

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