UZBEKISTAN: 32.5 thousand units more MTPL contracts in Q1 2018 vs Q1 2017

17 May 2018 —
During Q1 of 2018 in Uzbek MTPL segment total number of contracts amounted to 611.7 thousand units (32.5 thousand contracts more than a year before). Among 11 authorized segment insurers TOP-3 have 58.6% segment share: UZAGROSUG'URTA, KAFOLAT and GROSS INSURANCE.

For the first 3 months total volume of the segment premiums reached UZS 31.5 billion (~EUR 3.14 million), 16.4% more than for Q1 of 2017. Growth of the contracts' number and premiums resulted in the segment's expansion during Q1 by 5.6%. The biggest growth of the contracts (more than 2 times) saw GROSS INSURANCE, and the combined share of TOP-3 in the contracts amounted to 60.9%. The share of state-owned companies was 56.1% (-1.5%), and the rest: 43.9% (+16.4%).

In the beginning of 2018 new insurer, Temiryo'l-Sug'urta, entered MTPL market thus total number of the segment insurers now is 11. The TOP-3 share shows a declining trend: in Q1 2016 the share was 63.4%, in Q1 2017 - 61.5%, this year - 58.6%. According to SAIPRO the rest insurers have segment shares less than 10%. At that UZAGROSUG'URTA's share decreased by 3.1 points to 27.2%, KAFOLAT - to 19.2%. Q1 results show the growth of premiums volume of all companies except for Ishonch (-18.8%). Growth rates over the average level recorded GROSS INSURANCE, Universal Sug'urta, Uzbekinvest and Asia Inshurans (all over 17%), growth rates of others are lower than 15%.

Specialists of the Department for financial analysis and ranking of SAIPRO believe that the main reason of the segment's growth is natural growth of the number of vehicles in the country, as well as the growth of an average premium size (in Q1 2017 an average premium was UZS 46.8 thousand, in Q1 2018 - UZS 51.6 thousand) and establishment of the fixed insurance liability amount of UZS 12 million, which eliminated an impact of the exchange rate fluctuation.

For Q1 the number of paid claims dropped by 3.3% (from the previous year's level). However the volume of paid claims in the segment jumped by 21.6% to UZS 5.3 billion. The share in claims of TOP-3 amounted to 59.2%, TOP-5 - to 79.8%. Claims' growth was recorded by 6 companies, among them: GROSS INSURANCE (sevenfold), Uzbekinvest (87.3%), Universal Sug'urta (70.2%), Asia Inshurans (67%). An average payment per 1 claim during Q1 amounted to UZS 3 million and exceeded the same level of Q1 2017 by 25%. According to SAIPRO this is related to the rise in prices of repair and renewal operations and spare parts. Increase of claim payments led to loss run in the segment by 0.7 pp to 16.8%, though in general for the market this loss level is not very high.

EUR 1 = UZS 10039.70 (01.04.2018, according to the Central Bank of Uzbekistan)