UZBEKISTAN: over the next 5 years the share of life insurance may reach 50%

4 July 2018 — Marina MAGNAVAL
According to the data of the Ministry of Finance of the Republic, Uzbek insurance market demonstrated in the 1st quarter a very high growth rate compared to the previous quarters.

Total volume of the premiums exceeded the same figure of the last year by 83%, informed the Department of financial analysis and ratings of the News and rating agency SAIPRO. The main contribution to the market's growth was made by voluntary insurance, at that the highest growth rate saw the life sector. From UZS 381 billion* of total GWP - UZS 316 billion were generated by voluntary classes. Compulsory insurance compared to the 1st quarter last year increased only by 1% to UZS 65 billion. Thus, the share of voluntary insurance reached 82.9%, and the share of compulsory ones - 17.1%. Experts of SAIPRO believe that development of the local insurance market fully depends on the dynamics of voluntary classes.

Life insurers in the 1st quarter produced UZS 70.4 billion (almost 3 times more than a year ago). P/C insurance increased gross premiums by 69.3% to UZS 310.6 billion. The market share of life insurance reached 18.5%, and the share of P/C - 81.5%. Though P/C is prevailing in the market, according to statistics it's decreasing during the last 3 years. Analytics think that in the next 5 years the share of life insurance may reach 50%.

Statistical data show that during the last 3 years total GWP in 1st quarters keep a positive trend (1st quarter 2018 - UZS 161.9 billion, 1st quarter 2017 - UZS 208 billion, 1st quarter 2018 - UZS 381 billion), dynamics of voluntary and compulsory classes differs a lot (1st quarter 2016 - UZS 105.6 billion and 56.4 billion, 1st quarter 2017 - UZS 143.5 billion and 64.5 billion, 1st quarter 2018 - UZS 316 billion and 65 billion accordingly), as well as the dynamics of the growth rates of P/C and life insurance during the last 2 years (1st quarter 2017 - UZS 183.5 billion and 24.4 billion, 1st quarter 2018 - UZS 310.6 billion and 70.4 billion accordingly).

*EUR 1 = UZS 3224.73 (31.03.2016)

EUR 1 = UZS 3883.95 (31.03.2017)

EUR 1 = UZS 10039.70 (31.03.2018)

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