INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
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American Academic publishers, volume 05, issue 06,2025
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FUNDAMENTALS OF INSURANCE SERVICES MARKET DEVELOPMENT
Yuldoshova Aziza
is an assistant lecturer at
Tashkent State University of Economics
Abstract.
The market of insurance services is a set of economic relations related to the sale of
insurance services. Insurers, reinsurers, insurance brokers, and agents are professional
participants in the insurance services market.
Key words.
insurance, insurance market, insurance service, insurance protection, state budget,
bank, financial institutions, stock market, investment, deposit, finance, production, competition.
Introduction.
Comprehensive reforms in the Republic of Uzbekistan and the abolition of the
statemonopoly in the insurance sector will increase the market for insurance services. It created
conditions for the formation of the insurance services market, which is territorially divided into
international, regional, and national insurance services markets. The international insurance
services market covers international insurance services provided by insurance organizations of
some relatively developed countries. For example, the American insurance company 'AIG'
(American International Group) operates in over 100 countries, including the Republic of
Uzbekistan. The regional insurance services market is the insurance services market of
countries that are geographically, trade-economically, and culturally close to each other. An
example of this is the European Union regional insurance services market. The insurance
services market operating within the territory of individual states is referred to as the national
insurance market. In recent years, the national and regional insurance services market has
become the market for international insurance services. The process of integration is being
observed.
Insurance services are related to life insurance, depending on the specialization within a specific
field of insurance. The market of insurance services is divided into the market of general
insurance services, except for life insurance. For example, in the USA, Japan, and some
countries of the European Union, the market for insurance services related to life insurance is
quite developed.
More than 20 insurance organizations operate in the insurance market of Uzbekistan. The
largest insurance companies include "Uzbekinvest," a national export-import insurance
company, "Uzagrosugurta," a state joint-stock insurance company, and "Madad," an insurance
agency.
One of the characteristics of the insurance market of Uzbekistan is the specialization of existing
insurance organizations in various sectors of the economy. For example, the state-owned
insurance company "Uzagrosugurta" provides insurance protection for the agricultural
production sector and the population; "Kafolat" provides insurance services to legal entities and
individuals in cities; "Uzbekinvest," an export-import national insurance company, provides
insurance protection for export-import operations; "Birja-savdosugurta" provides cargo
insurance; "ALSKOM," the insurance organization, specializes in providing insurance services
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
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to the communications and telecommunications sectors; and the "ISHONCH" insurance
organization specializes in insurance protection of property interests of commercial banks.
The market of insurance services is regulated by the state in all countries of the world. Its
purpose is to protect the legal interests of the parties involved in insurance relations.
Method.
The insurance market is an integral part of the country's financial market, the subject
of sale and purchase of which is an insurance product. The consumer characteristics of these
products are very specific and different from other financial market products. Their uniqueness
comes from the essence of insurance.The universality of insurance determines the direct
connection of the insurance market with the finances of enterprises and the finances of the
population. The banking system, state budget and other financial institutions, and insurance
relations are carried out within it.
In these relationships, the respective financial institutions serve as both insurers and consumers
of the insurance product. A special relationship is formed between the insurance market, state
budgets, and extra-budgetary funds concerning the establishment of compulsory insurance.
A stable financial relations market has securities, the banking system, the currency market, and
state and regional finance, where insurance organizations place insurance reserves and other
investment resources.
The activity of the insurance market is carried out within the framework of the country's
financial system, both on the basis of partnerships and in a competitive environment. There is
free competition among different financial institutions for the funds of the population and
business entities. If the insurance market offers, for example, life insurance products, banks
offer deposits, the stock market offers securities, etc.
The role of the insurance market depends on two conditions. On the one hand, there is an
objective need for insurance protection in the socio-economic system of society, which leads to
the formation of the insurance market. On the other hand, the monetary form of establishing an
insurance fund to provide insurance protection connects this market with the general financial
market.
The role of the insurance market in the financial system is determined by the role of various
financial institutions in the financing of insurance coverage, as well as the importance of
insurance companies as facilities for the placement of investment resources and services for
insurance, investment, and other types of activities.
The universality of insurance determines the direct connection of the insurance market with
enterprise finance, population finance, the banking system, the state budget, and other financial
institutions where insurance relations are implemented.
In such a relationship, the respective financial institutions act as insurers and consumers of the
insurance product. A special relationship is formed between the insurance market and the state
budget and state extra-budgetary funds in connection with the establishment of compulsory
insurance.
The insurance market maintains stable financial relationships with the stock market, banking
system, foreign exchange market, and state and regional finances, where insurance
organizations place insurance reserves and other investment resources.
Analysis and Result
. The activity of the insurance market is carried out within the framework
of the financial system, both on the basis of partnerships and in a competitive environment.
This applies to the competition between different financial institutions for free funds of the
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
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population and business entities. If the insurance market offers, for example, life insurance
products, then banks offer deposits, the stock market offers securities, etc.
The insurance market performs a number of interrelated functions: compensation (return),
accumulation, distribution, prevention, and investment.
1) The main function of the insurance market is the compensatory function, with the help of
which the insurance institution exists. The content of the function is expressed in the provision
of insurance protection in the form of compensation for damages in the event of unpleasant
events that are the object of insurance for legal entities and individuals.
2) The accumulation or accumulation function is provided by life insurance and allows to
accumulate a predetermined sum insured under the concluded insurance contract.
3) The distributive function of the insurance market implements the mechanism of insurance
protection. The essence of the function is expressed in the formation of the target use insurance
fund. Formation of the insurance fund is carried out in the system of insurance payments and
insurance reserves that ensure insurance stability.
4) The preventive function of the insurance market is not directly related to the implementation
of insurance activities. This function is for warning. insurance event and loss mitigation.
Implementation of the prevention function is ensured by financing measures to prevent or
reduce the negative consequences of accidents and natural disasters. Appropriate funds are
taken from the Prevention Fund. The implementation of preventive functions helps to increase
the financial stability of insurers and is an important factor in ensuring the continuity of the
process of social reproduction.
5) The investment function of the insurance market is carried out by placing temporarily free
funds in securities, bank deposits, real estate, etc. With the development of the insurance market,
the role of the investment function increases. Attention is drawn to a number of foreign
economists who describe insurance companies as institutional investors whose main task in
social production is to attract capital through insurance. II. Ukrainian insurance market
Insurance arose and developed as a conscious, objective need of man and society to protect
against accidental risks. The need for insurance protection is universal; it covers all stages of
social reproduction, all parts of the socio-economic system of society, all economic entities, and
the entire population. The insurance market not only contributes to the development of social
reproduction but also actively affects financial flows in the national economy through the
insurance fund.
The insurance market is a complex, developing intersystem system; its links are insurance
organizations, insureds, insurance products, insurance intermediaries, professional assessors of
insurance risks and losses, associations of insurers, including associations of insurers, and the
system of its state regulation.
Insurance organizations are the institutional basis of the insurance market and are an
economically isolated segment of the insurance market, which completely isolates its resources
and performs insurance and other activities. manifests itself in independence. Insurance
organizations are formed according to their affiliation, the nature of insurance operations, and
the field of service.
Summary. It is necessary to improve the relevant norms in the Civil Code...
In particular:
1) It is known that in our republic electronic document circulation is also developing in the field
of civil relations, but the legal basis for the use of the information and communication system in
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the insurance sector has not been created; as a result, such favorable opportunities are not being
used.
For example, in Article 961 of the Civil Code "Form of Insurance Contract," it is stated that the
policyholder can submit only a written or oral application. It is also possible to submit only the
insurance policy (certificate, receipt) signed by the insurer. However, these processes can also
be created by email.
Such a situation can be seen in Article 930, i.e., in the norm on delivery of insurance rules to
the insured. Various methods can be used to communicate insurance policies to policyholders,
and one such option is through the Internet.
But this possibility is limited in the current version of this article.
Also, Article 951 of the Code stipulates that informing the insurer of the occurrence of an
insurance event must be carried out in the manner specified in the contract. However, it is
appropriate to provide additional options that can be used by any available method of warning.
2) Article 929 of the Civil Code contains the important conditions of the insurance contract, and
it is indicated that when concluding a property insurance contract, an agreement should be
reached between the insured and the insurer on the validity period of the contract. . However, in
the relationship between the insurer and the insured, the period of insurance is important, not
the validity period of the contract, because the insured has the obligation to pay insurance
compensation during the period of insurance.Therefore, it is appropriate to change the validity
period of the contract to the insurance period.
3) In the third part of Article 942, "Insurance Premium and Insurance Contributions," of the
Civil Code, in the cases stipulated by the law, the amount of the insurance premium is
determined in accordance with the insurance tariffs introduced or regulated by the state
insurance control bodies. shown.
Here there is state intervention; it is considered appropriate that the state does not interfere in
pricing issues in the activities of business entities and that these relations are regulated by
agreement of the parties.
4) Article 946 of the Civil Code requires the consent of the insurer when replacing
(reorganizing) the insured. However, during the transfer of property ownership, the property
itself does not change, the subject of the contract does not change, and the interests of the
insurer are not affected at all. Therefore, the requirement to obtain the consent of the insurer is
unreasonable.
5) In the fourth part of Article 948 of the Civil Code, "Premature cancellation of the insurance
contract," "In case the insured (beneficiary) cancels the insurance contract before the term, the
insurance paid to the insurer bonus is non-refundable, unless otherwise stipulated in the contract.
However, in order to ensure fair reimbursement of the parties' expenses, it is appropriate to
determine that the insurer will be entitled to a portion of the insurance premium in proportion to
the period of coverage.
6) The fifth part of Article 952 of the Civil Code, "Reduction of damage caused by an insurance
event," states, "Insurer's exemption from compensation for damage caused by the insured's
deliberate failure to take measures to reduce possible damage." That is, according to the current
version, the insurer can provide insurance compensation, and the insurer is obliged to take
measures for this, but the measure can justify not seeing. Such an obligation should be
determined not by law but by the agreement of the parties.
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7) The current Civil Code contains provisions that cause disputes in the payment of insurance
compensation. For example, in the first part of Article 953, "Consequences of the occurrence of
an insurance event due to the fault of the policyholder, beneficiary, or insured person," if the
insurance event is caused by the intent of the policyholder, beneficiary, or insured person In the
event of an accident, the insurer will be exempt from paying insurance compensation or
insurance money. The concept of malice here can cause various disputes and disagreements in
the payment of insurance compensation in practice. Therefore, it is appropriate to edit the
concept of intent in this part as "intent aimed at the occurrence of an insured event.
Also, the application of the norm on the exemption of the insurer from the obligation to pay
compensation with the second part of this article causes in many cases unjustified refusal to pay
insurance compensation by the insurer. ladi Although these matters should be at the discretion
of the parties to the contract, it is desirable for the parties to do so on the basis of equal rights.
8) Similarly, see the possibility of the insurer's unjustified refusal to pay the insurance sum and
insurance compensation in the norms of Article 955, "Cases of refusal to pay insurance
compensation or insurance money" possible.
Also, in the third part of this article, it is indicated that the refusal of the insurer to pay the
insurance compensation or the insurance money can be challenged only by filing a lawsuit in
court. However, there are now alternative methods of dispute resolution (mediation, etc.). Use
of these features is limited by law.
9) In addition, in reinsurance, disputes often arise between the insurer and the reinsurer
regarding the payment of insurance compensation.
In order to eliminate such unpleasant
situations and protect the interests of national insurers, Article 959 of the Civil Code stipulates
that the reinsurer has no right to refuse to pay insurance compensation under the reinsurance
contract in accordance with the provisions of the main insurance contract. It is appropriate to
enter.
According to the 10-year special edition of the "Global Mutual Market Share 10" report
published by the International Cooperative and Mutual Insurance Federation (ICMIF), the
mutual and cooperative insurance market is the 10th largest after the global financial crisis.
(2007-2017) is the fastest-growing part of the global insurance industry. For example, in the 10
years since the beginning of the financial crisis, mutual insurance premiums have increased by
30% compared to the growth of general insurance (17%).
The phrase double insurance in Article 960 of the current Civil Code does not reflect the full
meaning of the concept of mutual insurance. This article limits the possibilities of bilateral
insurance companies and does not contribute to the development of their activities. Because
mutual insurance is not only between two parties but usually between several persons.
Therefore, it is appropriate to name the concept of double insurance as "mutual insurance.".
There are only 3 bilateral insurance companies operating in Uzbekistan.
11) Article 961 of the Civil Code stipulates that compulsory state insurance shall be carried out
directly by state insurance organizations or other state organizations (insurers) specified in it on
the basis of legal documents on insurance. However, it is necessary to allow compulsory state
insurance to be carried out by insurance organizations of any ownership and organizational
legal form.
In conclusion, it can be said that the formation of the regulatory legal framework for state
regulation and control of insurance activities in the republic at a level that meets international
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 06,2025
Journal:
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requirements is one of the priorities for our country, and the active participation of the state and
relevant bodies is required in the process of implementing the given proposals.
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