TURKMENISTAN: The insurance penetration degree remains at a low level in GDP, 0.20% (2012-2014)

13 May 2015 — Olesea ADONEV
According to the XPRIMM estimates, the insurance penetration degree remains at a low level in GDP, 0.20% (2012-2014).

Responsible for the development of the insurance industry is "the only one" company that operates in the country: TURKMEN GOSSTRAKH ("State Insurance Organization of Turkmenistan").

After the collapse of the Soviet Union in 1991, the insurance market was partially opened to competition, and both state and private companies were operating. In 2000, the government cancelled the licenses of all the private insurers operating on the market, and effectively re-nationalized the insurance industry in Turkmenistan. TURKMEN GOSSTRAKH was taken into full state ownership in 1997, remaining the only player.

Starting July 1st, 2014 in Turkmenistan the process of demonopolization and privatization of state property began in accordance with the law adopted in December 2013 by the Turkmen Parliament. The new law enforcement also addresses the development of the insurance industry, as it allows the entrance of private capital in this area of business, previously controlled in its entirety by the State through a state monopoly insurance company (The State insurance Company of Turkmenistan).

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