Uzbek Insurance Companies Increase Liabilities by 1.5%, 2010
OREANDA-NEWS. February 03, 2011. Ministry of Finance of the Republic of Uzbekistan held a session on 27 January dedicated to results of insurance market activity in 2010 and foreground directions of further insurance sector reforming set in the Resolution of the President of Uzbekistan "On foreground directions of further reforming and increase of banking system financial stability in 2011-2015 and achievement of high international ratings".
The session drew representatives of the Finance Ministry, managers of the Association of professional participants of insurance market, the Fund for guaranteeing the compulsory insurance of vehicle owners' civil liability (CIVOCL) payouts, all insurance companies, insurance brokers and other professional insurance market participants.
The session critically assessed present level of the insurance market potential. It was noted that insurers have an opportunity to expand their insurance market both in voluntary and in compulsory insurance. The activity of professional insurance market participants was also assessed to increase financial culture and guarantee transparency of their activity.
It was also recommended to insurers, especially those working with foreign capital, to use modern insurance technologies more effectively and launch new insurance products.
Corresponding decisions aimed at insurance market development were made on the results of the session.
The adoption of new legal documents and introduction of amendments to certain legal acts to form an effective legal basis meeting modern requirements was noted as one of the main achievements of 2010. For instance, amendments were made to such laws as the Law "On insurance", "On compulsory insurance of vehicle owners' civil liability", Tax Code, etc.
In 2010 the insurance market of Uzbekistan demonstrated the growth of main indexes. On the results of 2010 aggregate volume of insurance premiums amounted to 171.4 billion soums, adding 17.3% as against the index for the previous year.
The growth of the volume of insurance payouts made up 130.4%, insurance liabilities grew by 47.6%. Also, 2010 reported the growth of voluntary and compulsory insurance. As a result, the share of compulsory insurance in aggregate insurance premiums stabilized at 26%.
As of the end of 2010, 33 insurance companies operate in Uzbekistan. Out of them, two insurers operate in life insurance, 30 – in general insurance and one - in reinsurance. Also, three insurance brokers and two actuary companies operate in the insurance market.