As the Department of Financial Analysis and Rating of the Information-Rating Agency SAIPRO confirmed, such extreme market premium growth was possible due to a 2.2 times volume increase of voluntary insurance, now UZS 675.7 billion, which, according to the agency, means real growth and development of the local insurance market.
Experts also pointed out that during the last 2 years, the life segment has been growing rapidly. In the first half of 2018, total life premiums went up 2.9 times to UZS 169.8 billion. Life insurers generated 71.5% more premiums than a year ago (UZS 647.8 billion). Thus, the life market share increased by 7.4 points to 20.8%. In compulsory classes, GWP growth rate amounted to 15% and premiums reached UZS 141.9 billion. In general, the share of voluntary insurance reached 82.6% and the share of compulsory insurance amounted to 17.4%.
In terms of paid claims, the biggest growth rate was recorded in voluntary insurance (+31% to UZS 140 billion). Paid claims in compulsory insurance amounted to UZS 37.1 billion (+15%). However, the growth of paid claims did not change the ratio between voluntary and compulsory classes in general. The share of voluntary classes in paid claims amounted to 79% (+2.3 pp) and the share of compulsory classes reached 21% accordingly. At the same time, non-life paid claims decreased y-o-y (-25.9% to UZS 79.6 billion) and life paid claims saw an extreme growth rate of 3.1 times to UZS 97.5 billion (+55%). As SAIRPO noted, the share of life paid claims in the local market exceeded paid claims of non-life sector for the first time.
The loss ratio in total decreased y-o-y (21.7% vs 31.9%), mainly due to the decrease of loss ratio in the non-life sector (from 28.4% to 12.3%). Loss ratio of life sector, on the other hand, went up from 54.3% to 57.4%.
According to SAIRPO, GWP of the local market were generated by 27 insurers in the first half of the year, 4 of them work in life sector and 23 companies - in non-life.
*EUR 1 = UZS 9150.95 (30.06.2018)