Uzbekistan recorded in 2011 the second best economic growth rate in the Commonwealth of Independent States according to the UN report World Economic Situation and Prospects 2011 (WESP). In line with the forecast of the UN experts, the real gross domestic product (GDP) increased by 7.3% in 2011 (partially estimated), while, in 2012 Uzbekistan's economy is expected to rise by 7%.

In this context, alike during the previous years, in 2011 the insurance market of Uzbekistan has experienced tremendous double-digit growth in both market segments: voluntary and mandatory insurance.

"In 2011, in Republic of Uzbeksitan insurance companies have signed 6 million insurance contracts, and the volume of the gross written premiums rose to UZS 231.6 billion (EUR 99.15 million). This result shows a gradual quality increase of insurance services over the years. Therefore, the gross written premiums from 2007 till prezent has increased 3 times. Also, last year, insurance companies have paid claims of UZS 45,1 billion (EUR 19.31 million)", stated Olimjon IKROMOV, Chief of the State Insurance Supervision of the Ministry of Finance of the Republic of Uzbekistan.

Last year, four new insurance companies were established: DD-General Insurance, HALK Sugurta, HAMKOR Sugurta, GROSS Insurance, indicating a constant investors' interest for this industry. Thus, the market player totalized

37 insurers one reinsurer and three brokers. In the near future, sound development of the insurance market and prudential reasons will require further capital increases. "According to the legislative amendments regarding the change of the minimum capital requirements for insurers, starting July 1, 2012 until 2015, Uzbek insurers need to boost the capital by almost 2 times. In 2011, the share capital of insurance companies reached UZS 240 billion, therefore, in the last five years the insurance market capitalization increased by about 2.5 times ", explained Olimjon IKROMOV.

At the same time, in line with the priorities of the national economy for 2012, in order to ensure progressive increase of the share of insurance services in the country's GDP in the short term, the Ministry of Finance aims to:

• Further development of the legislation in insurance business, which is actually one of the essential elements of social protection and reduction of budget expenditures for unforeseen natural disasters and technological risks;
• Improvement of export insurance, which will ensure better use of insurance to boost the export potential of the republic; 
• The integration of banking and insurance sectors will not only provide the complexity of financial services to consumers, but also give additional impetus to the development of the banking and financial sectors of the economy; 
• Encouraging the introduction of insurance services in rural areas in such important areas as life and medical insurance for the rural population is a vital area of security in Uzbekistan.
  

Access www.xprimm.com and download the FY2011 Uzbek insurance market statistics.

Market indicators (in EUR and UZS):

• GWP
• Claims
• Growth rates
• Portfolio
• Top 10 insurers
• Market shares