According to the Ministry of Finance in the 1st quarter of 2017, Uzbek insurance companies made insurance payments in the amount of 75.2 billion soums. This indicator exceeds the results of the first quarter of 2016 by 2.1 times.
SAIPRO analysts note that this growth rate is very high and does not reflect the dynamics of the common market. Analysis of the composition of payments shows that the high growth rate of insurance payments was mainly provided by the indicator of one large insurance company - "Uzagrosugurta" JSC, which in the 1st quarter made 4.6 times more insurance payments than in the 1st quarter of the previous year. Taking into account the seasonal nature of the payments made by Uzagrosugurta, it is expected that the growth rate of payments for the company and for the market will be leveled off during the following quarters of this year.
In the context of insurance forms for the period under review, a high growth rate of insurance payments for voluntary insurance was observed. Insurance payments for this form increased by 2.9 times to 60 billion soums. Compulsory insurance payments amounted to 15.3 billion soums which is 6% increase against the same period of the previous year. As a result, the share of voluntary insurance in total payments increased by 20.3 percentage points amounting to 79.7%. Accordingly, the share of compulsory insurance in total insurance payments made up 20.3%.
The above-mentioned rapid growth in volume of insurance payments on the market, accordingly, had a significant impact on unprofitability indicator in the market (the ratio of insurance payments to insurance premiums). So, according to the results of the 1st quarter of 2017, the unprofitability indicator of the market increased by 14.3 percentage points up to 36.2%. In particular, this indicator rose from 20% to 41.8% for voluntary insurance, while it decreased from 25.6% to 23.7% for compulsory insurance.
In general, seasonal insurance payments of one large company on the market caused a sharp jump in the level of unprofitability in the market. In this regard, it is expected that this figure will decline in the following quarters of this year.
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