UZBEKISTAN: Insurance Market Development Agency to be established

18 July 2019 —
At a meeting held July 10 by President Shavkat MIRZIYOYEV, it was decided to reform the State Inspectorate for insurance supervision at the Ministry of Finance by liquidating it and establishing an Insurance Market Development Agency, reports UzReport.

The President asked for a strategy for medium and long-term insurance market development to be prepared, capable of doubling GWP per capita, and tripling the insurance penetration degree in the country's GDP until 2022.

As the President noted, "the sector does not need a controlling authority, but one that will introduce advanced modern standards, create a truly competitive environment for all participants and develop the insurance market".

According to him, now the local insurance sector occupies a very insignificant place in the financial market of the country. From January to June 2019, total GWP increased 1.5 times y-o-y, however, the penetration degree in GWP is only 0.4% (compared to 6% in Germany or 1.5% in Russia). Paid claims of local insurers for the first half of the year amounted to only 11% of total GWP (vs 50-60% on average worldwide).

Among key problems the President noted low attractiveness of insurance services, the low level of trust in insurance and a need to increase support for insurer investment activities. At the meeting the following tasks were announced: to simplify the procedure of claim consideration and reduce waiting time, to introduce a system for damage assessment and prompt claim payment, as well as to establish corporate management standards and obtain international ratings, wrote.