Tashkent, Uzbekistan (UzDaily.com) -- The Uzbek insurance sector is growing rapidly but remains a small part of the local financial market, offering limited sophistication and product diversity. 

The substantial reform programme, embarked on in August 2019 to develop a new regulatory framework and measures to support premium growth, is behind schedule because of the pandemic.

Non-life premiums written returned to strong growth of 66% in 1H21 yoy after a slowdown to only 9% growth in 2020 due to pandemic-related lockdowns. The 1H21 growth figure was higher than the yearly average of 32% in 2013–2019, and was mostly due to growth in the commercial property and credit insurance lines.

The life sector remains immature with total life reserves at USD20 million at end-1H21. This is because the low level of disposable income in the country constrains demand for long-term savings. Life insurance premiums grew 76% yoy in 1H21, after falling by 44% in 2020 from 2019.

The fall in 2020 was caused by the government’s decision to narrow tax incentives for life policy holders from October 2019.