METHODS OF REGULATING THE INCURANCE MARKET IN UZBEKISTAN

Abstract

Development capacities of the insurance industry in Uzbekistan, currently ongoing work on the development of the insurance market, production, and directions for providing the industry.

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Bakhriev Dilshod Rizvonkulovich. (2024). METHODS OF REGULATING THE INCURANCE MARKET IN UZBEKISTAN. European International Journal of Multidisciplinary Research and Management Studies, 4(12), 52–58. Retrieved from https://inlibrary.uz/index.php/eijmrms/article/view/57628
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Abstract

Development capacities of the insurance industry in Uzbekistan, currently ongoing work on the development of the insurance market, production, and directions for providing the industry.


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EIJMRMS ISSN: 2750-8587

VOLUME04 ISSUE12

52


METHODS OF REGULATING THE INCURANCE MARKET IN UZBEKISTAN

Bakhriev Dilshod Rizvonkulovich

The Banking and Finance Academy of Republic of Uzbekistan

AB O U T A RT I C L E

Key words:

Insurance industry, insurance market

participants, insurance premiums, insurance
payments, insurance event, insurance companies,

benefit.

Received:

29.11.2024

Accepted

: 03.12.2024

Published

: 09.12.2024

Abstract:

Development capacities of the

insurance industry in Uzbekistan, currently
ongoing work on the development of the

insurance market, production, and directions for
providing the industry.

INTRODUCTION

In our country economy further development, to the population every to face quality Extensive work is

being done to provide financial services, further support the insurance industry, and protect the rights
and interests of the population in this direction.

Our economy is stable on the basis of such reforms carried out in our country to the result take exit and

financial services show field too quality in terms of making it look modern, there is a high profit motive.

Today, we see that there is a direct need for international standards in the development of various
sectors of our economy. This is of course also applies to the insurance industry being this the field in

development too directly international experience we lean Specifically, the field further improve

according to Uzbekistan Republic President PQ-4412 No. "Uzbekistan Republic of insurance the market
reform to do and his fast "On measures to ensure the development" and PQ-5265 "On additional

measures on digitization of the insurance market and development of the life insurance industry" were

adopted.

VOLUME04 ISSUE12

DOI:

https://doi.org/10.55640/eijmrms-04-12-09

Pages: 52-58


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In accordance with these current decisions, necessary measures and road maps have been established,

such as ensuring the rapid development of the insurance industry, implementing modern methods of

training industry personnel, and gradually transitioning to digitalization of the insurance market.

Also, to the Oliy Majlis and the people of Uzbekistan on December 20, 2022 did in the appeal as noted
"Our people qualified and good quality we will further expand the possibilities of using medical services.

First of all, the guaranteed amount of free medical care is determined by law. Funds allocated per

patient reached to go for state medical insurance to pass let's speed it up." From this apparently not
only general insurance but medical and life insurance in general of this activity all directions the same

our population social and economic for protection serves .

This activity not only eliminates the consequences of events that may occur in business, forms sources
of money in economic activity, prevents inflation and investment risks, trade, medicine, tourism and

other risks that may occur, but also saves money through the function of savings. collection of funds It

also serves the social life of the population shows stability in life.

Therefore, further development of this field is not only from the point of view of social protection of the
population in terms of perhaps our economy to develop is also important contributes. This, in turn,

requires organizational-legal, economic improvement and scientific research of services in this field.

Through this, it can be seen that this topic is relevant.

LITERATURE REVIEW

Current issues, problems and solutions of the insurance industry are reflected in scientific works and

literature of a number of scientists.

A lot of scientific research is being conducted on current issues and problems in the organization of this
activity and their solutions.

For example, Umarov (2009) gave his thoughts on the management of the development of insurance

activities in Uzbekistan, the analysis of the current situation and problems in the development of
insurance activities, the formation and development of the institutional base of insurance activities.

Shennaev (2020) studied the international experience of insurance regulation in the case of the

European Union and its member states, Great Britain, Germany, and the United States, as well as

developed Asian countries such as China and Japan. In particular, analysis of changes and developments
in the field of insurance at the international level in the current globalization environment done


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According to the results of these studies, a recommendation proposal was developed regarding the

application of modern forms of regulation of the insurance sector to the insurance sector of Uzbekistan.

Opening (2022) insurance companies by insurance event happened when issued in connection with

insurance claims in the immediate implementation of existing damage compensation the document by
learning is available damage the amount identify insurance payments to pay on the surface obligations

done increase, damages to cover for cost determination and him in accounts improve the appearance

according to thoughts statement done

Butovsky this Russian researcher accumulated to go life insurance according to According to his

opinion, the main purpose of this insurance It is lifetime and fixed-term types of savings, the possible

risk type is death and reaching a certain age, the use of mathematical and statistical methods in this
insurance network, and the certainty of having income are given (Semenova, 2014 ) .

Shennaev (2021) analysis of the impact of insurance activity on economic growth, insurance activity

competition based on development current status and trends and of insurance activity state by in order

put international experience and in it Opinions on ways of use in Uzbekistan are stated.

RESEARCH METHODOLOGY

Research work doing tracking, information collection, generalization, comparison, economic views of

local and foreign scientists in insurance activity, problems in the field and their solutions according to
research and to the field around legal and regulatory and legal documents were studied, conclusions

and proposals were developed.

ANALYSIS AND RESULTS DISCUSSION

This is it in the field to numbers attention which looks if we only one 2021-2022 Although the number
of insurance organizations has decreased from 42 to 41, it has increased compared to previous years,

including 8 for life insurance. We can see that the total authorized capital of insurance organizations

has increased from 1,589,808 million soums to 1,884,111 million soums, that is, by 18.5%. Insurance
brokers rose from 5 to 7, and actuaries to 5, unchanged, while insurance agents rose to 9 from 9,581.

decreased to 155 (4.4 percent). The number of insurance organizations that are members of the

Payment Guarantee Fund increased from 23 to 25 (8.7 percent).


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1- table

Uzbekistan insurance the market composition

Insurance the market composition

31.12.2021

31.12.2022

Change %

Total insurance companies

42

41

- 2.4%

General insurance field companies

34

33

- 2.9%

Life field companies

8

8

0%

Insurance of companies total authorized

capital (million soms)

1 589 808

1 884 111

+18.5%

Insurance brokers the number

5

7

+ 40.0%

Insurance actuaries the number

5

5

0%

Insurance agents the number

9581

9155

- 4.4%

The number of participants of the payment

guarantee fund

23

25

+8.7%

If we pay attention to the indicators of insurance premiums in the insurance market for 2027-2022,
according to the analytical data of the Ministry of Economy and Finance, the total volume of insurance

premiums collected by the country's insurance companies in 2022 was 6.2 trillion soms, which is the

same as last year. 67.0% more than the indicator. In this case, we can see that the volume of insurance
premiums received from voluntary insurance types amounted to 5713.6 billion soms in 2022.

1-

picture 2017-2022 years insurance awards about information, (in billion soums)

Insurance organizations in the general and life insurance network at the end of 2020 by total 737 587
million soums insurance payments done increased being this indicator reached 1,232,326 million

soums (+67.1%) by the end of 2021.

Compulsory insurance

2022

2021

2020

Optional insurance

2017

2018

2019

518,0

502,3

360

313,3

1849,6

1371,7

263,5

694,1

233,3

2000,6

3230,5

5713,6

6 000,0

5 000,0

4 000,0

3 000,0

2 000,0

1 000,0


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Figure 2. 2017-2022 years insurance payments about information

In 2022, insurance coverage also showed growth trends in general, that is, 1.2 trillion soums of

insurance coverage paid in 2021 by 2022 increased by 2.5 trillion soums, in which the increase was
110.3 percent. The main increase was the share of voluntary insurance.

Internationally, the insurance services market is projected to grow from USD 5,946.74 billion in 2022

to USD 6,466.23 billion in 2023, at a compound annual growth rate (CAGR) of 8.7 percent. The insurance
market is then expected to grow at an average annual rate of 9% to reach $8.4 trillion by 2026.

Total insurance premiums

Compulsory insurance

2022

2021

2020

2019

Optional insurance

2017

2018

518,0

502,3

360

313,3

263,5

694,1

233,3

3732,8

3230,5

2209,6

1849,6

2313,9

1635,2 2000,6

927,4

1371,7

3 000,0

2 000,0

1 000,0

-

6 231,6

5713,6

7 000,0

6 000,0

5 000,0

4 000,0

Share of insurance premiums in GDP (in percent)

2022

2021

2020

2019

2018

2017

0,20

0,37

0,38

0,29

0,44

0,40

0,51

0,69

1,20

1,00

0,80


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3-

picture Insurance of awards gross internal in the product share dynamics, percent

As you can see from the picture below, there have been significant changes in the industry in recent

years. Despite this, there are some problems in the field that may prevent insurance companies from

increasing and maintaining their competitiveness in the current globalization environment. Among
them, there are obstacles to the constant growth of the population's income, the vision for the customer,

the shift of the industry to the side of intermediaries, and low production efficiency.

The world to the experience look throwing if we many developed countries growth is primarily due to
higher insurance prices rather than volume or new risk insuring. This, of course, affects the

development of the industry.

As the most important directions for the development of the insurance industry in such situations
insurance types, field and insurance networks development not only demands, but also puts in front of

us the urgent issue of further development of activities in the field of insurance services.

CONCLUSION AND OFFERS

In conclusion, it can be said that the above indicators show that the insurance sector in our country is
popularizing and developing day by day. But, with this, all of the market participants covering is taking

that won't be. Insurance of consumers the more we attract, the higher the level of social protection of

our population. This, in turn, leads to the saving of budget funds in the social direction.

Regarding the further improvement of the insurance industry in Uzbekistan and the numbers we have

analyzed and insurance in the field today's of the day problems eliminate to do I want to make

suggestions.

These are the following:

First, in Uzbekistan insurance field international to standards adaptation; Second, further develop the

life insurance network

Thirdly, national from our mentality came get out islam insurance development and public promotion;

Fourthly, to increase the legal literacy of the population in this direction by strengthening the

promotion of the insurance sector among the population;


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Fifth, in the development of the insurance industry, to promote cooperation between researchers

conducting research in this field and insurance companies, without identity;

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Абдурахмонов И. Х., Ўзбекистон Республикасида жавобгарликни суғурталашнинг амалиётини такомиллаштириш. И.ф.н илмий даражасини олиш учун тақдим этилгандиссертация автореферати. –Т.: - 2010. -20б.

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