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PRIORITY AREAS FOR THE DEVELOPMENT OF LIFE
INSURANCE IN UZBEKISTAN
Yo’ldoshova Aziza Muzaffar qizi
ABSTRACT
: The article provides information on the definition of life
insurance and its main features, as well as its role in social protection. As a result
of the abolition of tax benefits related to life insurance, an analysis of insurance
premiums received in the life insurance industry under the influence of a decrease
in insurance demand has been conducted, and proposals and recommendations for
its development have been developed.
KEYWORDS
: Insurance, insurance market, life insurance, insurance
premium, insurance payments, insurance liability, funded life insurance, life
insurance companies, insurance classes
Introduction:
There are 38 insurance organizations operating in the country's
insurance market, 7 of which specialize in life insurance. They are distinguished
by their specialization in various sectors of the economy. Significantly, insurance
services are regulated by the state in order to protect the legitimate interests of the
parties involved in insurance relations. In accordance with the Decree of the
President of the Republic of Uzbekistan dated October 23, 2021 "On Additional
Measures for the Digitalization of the Insurance Market and the Development of
the Life Insurance Sector," starting from July 1, 2022, the possibility of purchasing
all types of insurance policies online through the Internet should be created.
According to the 2022 indicators of this system, the total volume of insurance
premiums amounted to 6.2 trillion soums. 76 percent of it falls on general
insurance, and 24 percent on life insurance. 10% of the total insurance premiums
are formed from mandatory insurance contributions, the remaining 90% is the share
of voluntary insurance premiums. In 2021, these figures were 16 percent and 84
percent, respectively. These figures indicate the growing popularity of voluntary
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insurance classes in our country. Nevertheless, the volume of life insurance
premiums in Uzbekistan is 0.17% of GDP. This means an average of $3.91 per
capita. For comparison, this figure reaches $31.24 in Kazakhstan and $21.85 in
Turkey. The total volume of insurance premiums is 0.52% of GDP and averages
$12.1 per capita. This figure is $58.5 in Kazakhstan and $119.7 in Turkey.
Accident and health insurance premiums account for 0.01% of GDP and average
$0.28 per capita. This figure is $10.1 in Kazakhstan and $24.5 in Turkey. The total
volume of insurance premiums is 0.52% of GDP and averages $12.1 per capita.
This figure is $58.5 in Kazakhstan and $119.7 in Turkey. Accident and health
insurance premiums account for 0.01% of GDP and average $0.28 per capita. This
figure is $10.1 in Kazakhstan and $24.5 in Turkey. This indicates the need to pay
special attention to the development of these insurance classes. At the present stage
of the reforms being carried out in our country, the active development of insurance
services aimed at ensuring sustainable economic growth and improving the quality
and standard of living of the population requires strengthening the role of life
insurance in the national insurance market. In modern conditions, increasing the
insurance literacy of the population and trust in insurance, popularizing life
insurance, expanding the range of life insurance services, and ensuring the level of
consumer satisfaction with the quality of life insurance services are of particular
importance. Therefore, promising measures are being implemented in the national
insurance market. Studies have shown that the lack of information about life
insurance among many potential policyholders and their low trust in insurance
companies, as well as consumer dissatisfaction with the quality of insurance
services, leads to their refusal to make life insurance decisions. Therefore,
monitoring the life insurance market through social surveys, identifying and
assessing the social, demographic, and economic factors influencing the demand
for life insurance services, as well as the degree of their impact, is a very important
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process. This will allow for the development of recommendations for improving
the quality and competitiveness of life insurance products.
Analysis of literature on the topic.
In the article "Foreign Experience in the
Development of Life Insurance and the Necessity of its Development in
Uzbekistan," prepared by A. Temirkulov, it is emphasized that a progressive type
of life insurance is an unchanging type of insurance in preventing various life risks.
In the opinion of M. Bekberganov and A. Ikromov
In his article "Current State of Life Insurance in Uzbekistan and Ways of its
Development," he acknowledged that life insurance is one of the types of insurance
that plays an important role in human life, and its share in GDP is very small, and
to increase this amount, the country needs to develop using the experience of
foreign countries. In the article by O. Yuldashev "Ways to Improve Tariff Policy
in Life Insurance," life insurance is one of the main sources of financing long-term
investments and one of the most important instruments of economic development
of countries at the present stage. [3] In D. Abduvaliyev's article titled "Current
Issues of Life Insurance," life insurance is considered one of the important
directions in organizing the country's social protection. Therefore, to develop this
activity, it is necessary to develop the activities of the life insurance agency [4]. In
M. Sultanova's article "The Essence and Necessity of Life Insurance," it is stated
that "Life insurance is a system for implementing the economic and social needs of
society.
"is one of the important means of increasing".
Methods.
In the implementation of the research objectives, methods of logical
and structural analysis, grouping, economic and statistical analysis, mutual and
comparative comparison were effectively used.
Resulrs;
As a result of the conducted research, important proposals were
developed for achieving the level of life insurance in the insurance market of
Uzbekistan at the level of developing countries. At the same time, the
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circumstances hindering the development of life insurance in the market and ways
to eliminate them are substantiated.
Analysis;
Life insurance assumes obligations to insure against risks
associated with human health and death. Insurance of the population against these
risks, financing of losses, would lead to the fulfillment of the task of social
protection in our country. In the Ministry of Economy and Finance's publication
"Budget for Citizens - 2023," from April 1, 2023, the benefit on personal income
tax for the part of taxpayers' wages and other income directed to long-term life
insurance has been canceled. This shift in the insurance market has led to a decline
in life insurance premiums. According to 2023 indicators, the total volume of
insurance premiums amounted to 8 trillion soums. Of these, 96% is general
insurance, and 4% is life insurance. Requirements for the life insurance industry
decreased, and insurance revenues fell sharply. (Table 1)
If we analyze the general indicators of life insurance according to the table
data, we will have the opportunity to obtain the following results. According to 3-
year statistical data, insurance premiums received by life insurance in relation to
the total insurance premiums in the insurance market amounted to 19%, and in
relation to payments - 50%. By 2022, these indicators for bonuses increased by
24%, and for payments - by 58%. But according to the results of 2023, these
indicators, namely insurance premiums - 4%, insurance payments - 22%. This led
to a 5-fold decrease in the insurance premium indicator for 2023 compared to 2022
and a 2-fold decrease in insurance payments. If we compare the amounts of
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insurance premiums by year, it can be seen that the amount of insurance premiums
received in 2023 decreased sharply compared to 2021 - by 44%, and compared to
2022 - by 78.8%.
If we compare the amounts of insurance payments by year, then in 2023 the
amount of insurance premiums received decreased by -73.6% compared to 2021
and by -45% compared to 2022. If we take the main indicators of life insurance by
classes, we can see that the indicators of 2023 have significantly decreased
compared to 2021. As you know, new insurance classes were created for the
development and reform of life insurance. For some classes, no results have been
achieved at all (Table 2).
In this table, according to 3-year statistics of classes of voluntary life
insurance, it amounted to 69,1344 trillion soums, and by 2023 this figure reached
24,8820 trillion soums. That is, we can see that it decreased by -442524 trillion
soums. In percentage terms, this indicator is -36%.
If we look at the total insurance premiums for life insurance of the 1st class as
a percentage, then in 2022 it was +26.8% compared to 2021. However, this
indicator decreased by 13.6% in 2022 compared to 2023.
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A sharp change in the indicators of life insurance companies led to the
disappearance of benefits for life insurance, and the main goal of the population's
use of insurance company services was to avoid paying income tax.
According to the data in Table 3, compulsory insurance increased by +72%
compared to 2021. And voluntary insurance decreased by -41.5%.
As can be seen from the table data, as the share of life insurance in GDP
decreases, there is a possibility of its complete disappearance. These indicators also
lead to a decrease in the solvency of insurance companies. We know that life
insurance is a leading type of activity in the formation of domestic investments of
the state. According to foreign experience, life insurance differs significantly from
the insurance market of Uzbekistan.
We can see that the role of life insurance in developed countries is higher than
in the insurance market of Uzbekistan, which indicates the well-organized activity
of companies in these countries and the high demand for life insurance. In
Uzbekistan
According to the results of 2022, life insurance accounted for 0.17% of GDP.
This indicates that the situation is unfortunate for several Asian and developed
countries. For example, in Singapore it was 8.07%, in Germany 3.1%, and the
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United Kingdom with the highest indicator was 10.51%. This indicates a high
demand for insurance in these countries.
This indicates that the state of life insurance in Uzbekistan is significantly
lower. [10] The reason for the high level of life insurance in these countries is the
preservation of benefits, and as a result of the preservation of the attractiveness of
these benefits, we can see that potential policyholders have the opportunity to use
these insurance products, and the demand for them is high.
Conclusions
. Taking into account the above, assessing the trends and
prospects for the development of the life insurance services market of our country
based on national and foreign experience, identifying the factors influencing the
development of the life insurance industry and the degree of their influence,
identifying fundamental problems related to the development of life insurance, and
developing proposals and recommendations aimed at solving them is undoubtedly
the most pressing issue on the agenda today. In the above tables of the demand for
life insurance in the insurance market of Uzbekistan, we can see that as of 2023,
companies did not operate, both for contracts and for insurance premium receipts
and for obligations. We see that almost all indicators that did not show results are
in a negative state compared to previous years, that is, companies have zero results
in this activity. This situation leads to the complete disappearance of life insurance
in the insurance market and the loss of its attractiveness. The general nature of life
insurance leads to its disappearance from the market. At the same time, the
company's employees also held a certain leadership position in the employment of
employees working there. The loss of this benefit also leads to unemployment
among employees in the insurance market. And the state is creating full conditions
for the implementation of expenses for the population in need of social assistance
without the assistance of insurance companies, and the formation of material
assistance to these people in case of death remains solely the responsibility of the
state and state-owned agencies and organizations. That is, the state is implementing
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further strengthening of social assistance protection without using the help of
companies. And at the same time, reserves formed by life insurance companies
from formed insurance reserves, i.e., from insurance premiums received under life
insurance, contributed to the formation of domestic investments of the Republic of
Uzbekistan. This situation is also practically disappearing. The result of this shows
that companies are content with operating under the first and second classes of
general insurance. At the same time, according to Resolution No. 108, the
employer's liability insurance is at the disposal of life insurance the transition, that
is, the granting of permission to implement the insurance product, still belongs to
the general insurance mechanism, and life insurance companies are becoming
companies that operate not in the life insurance network, but entirely on the basis
of the general insurance company network. This will lead to the complete
disappearance of life insurance. As a solution to such problems
1. Restoration of life insurance benefits.
2. control of life insurance contracts based on an electronic platform.
3. In order not to suffer losses as a result of non-receipt of state income tax, to
impose restrictions on the part of the monthly salary received by individuals that is
directed to life insurance.
4. Expansion of investment objects of life insurance companies, that is,
widespread allocation of funds to high-yield objects.
5. In order to further improve the standard of living of the population,
introduce long-term pension insurance that protects against inflationary factors.
development; 6. Life insurance companies in cooperation with commercial
banks
wide promotion of insurance products among the population
Implementation of mechanisms
The implementation of the above proposals can have an effective impact on
the development of life insurance.
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The development of life insurance will lead to an improvement in the social
situation of all segments of the population and a reduction in the costs associated
with state social protection. An increase in the volume of insurance premiums
received for life insurance will lead to an increase in the volume of domestic state
investments.
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1
A.Temirqulov “Yangi o‘zbekistonning taraqqiyot strategiyasini amalga
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