UZBEKISTAN: in 2023, the total charter capital of insurance companies increased by 22%

17 April 2024 — Marina MAGNAVAL
At the end of 2023, the total number of existing insurance contracts in Uzbekistan was about 9.74 million units, and the total number of concluded contracts was 9.13 million units (in 2022: 8.40 million and 7.95 million units, respectively). This indicates a stable pace of development of insurance activities, according to the Ahbor-Reyting rating agency.

The agency noted that as a result of measures taken to increase charter capital, during 2023 the total charter capital of insurance companies increased by 22.05% and amounted to UZS 2,298.57 billion (~EUR 0.19 billion). At the end of 2023, the investment portfolio of insurers increased by 29.4% to UZS 6.15 trillion. Most investments fell on bank deposits (+39.4%, UZS 4.04 trillion). Investments in securities increased by 5.4% and amounted to UZS 1,357.49 billion or 22.1% of all investments of insurance companies.

According to preliminary data, during 2023, non-life premiums increased by 29.3% and amounted to UZS 8.06 trillion (~EUR 0.59 billion). At the same time, life premiums decreased by 78.86% and amounted to UZS 322.49 billion (~EUR 23.60 million). At that voluntary insurance increased by 29.37% to UZS 7.39 trillion or 91.71% (in 2022: 91.68%) of the total market. Compulsory insurance increased by 28.96% to UZS 668.07 billion.

At the end of 2023, there was a decrease in paid claims by 22.01% to UZS 2,022.05 billion (~EUR 0.15 billion). Of these, 87.67% falls on voluntary insurance (UZS 1,772.70 billion).

In recent years, there has been observed a faster growth rate in voluntary insurance, which indicates real development of insurance and an increase in the level of confidence in the insurance services. Thus, as of January 1, 2024, the number of insurance companies was 43, of which 8 are life insurers, the agency added.

Ahbor-Reyting is the first rating agency in Uzbekistan, created to provide rating services to commercial banks, insurance and leasing companies, issuers of corporate bonds, pawnshops, microcredit, and other organizations.

*EUR 1 = UZS 13,667 (31.12.2023)