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Uzbekistan discusses reforming and speeding up the development of the insurance market

The Ministry of Finance of the Republic of Uzbekistan submitted for discussion the Resolution of the President "On measures to reform and ensure the accelerated growth of the Uzbekistan insurance market", UzReport agency reported.
Uzbekistan discusses reforming and speeding up the development of the insurance market

The document bans the administrative interference in the activities of the insurer (reinsurer), the diversion and use of the allocated funds in insurance reserves for inappropriate expenses, charity and for other purposes, forcing the insurer (reinsurer) to enter into contracts and accepting unreasonable risk, the inevitability and likelihood of which is obvious; violation of the healthy market competition principles, unreasonable and significant deviation of tariffs from the average market, the use of dumping schemes in the implementation of insurance services. The document proposes to increase the minimum amount of insurer charter capital differentiated depending on the types and branches of insurance within 2018 to 2021.

The resolution can be adopted as of January 1, 2019, in this case, insurers (reinsurers) may be exempted from paying income tax for a period of 3 years with the targeted direction of the released funds to increase the charter capital and bring them in line with requirements. Non-resident legal entities registered offshore zones and citizens residing in offshore zones, insurance organizations that carry out activities in the same insurance industry as the insurer will not be able to participate in the charter capital of the insurer (reinsurer).

It is also proposed to establish a large reinsurance company in the country with the involvement of leading international insurance companies as a technology partner or a founder. Besides, the Ministry of Finance proposes to abolish the State Inspection for Insurance Control and establish the Insurance Market Development Agency with Services for Consumer Rights and Legal Interests Protection.

Source: https://forinsurer.com/news/18/05/21/35977

Photos per websites: kommersant.uz, uzdaily.uz.

 

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