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54DEVELOPMENT PROSPECTS OF INSURANCE MARKET
OF UZBEKISTAN Yakubova Makhtumakhon Asatullaevna
Assistant teacher of Tashkent state technical university, Uzbekistan E-mail: [email protected]
The article discusses the current state of the insurance market of Uzbekistan, current insurance legislation and issues of improvement of the insurance market.
Keywords: insurance broker, insurance pools, mutual insurance, insurance, insurance legislation
To date, the scope of insurance has become one of the priority directions of development of the financial sector of the country. Given the indispensable role of insurance in the stability of the economy and the social protection of the population in conditions of market economy, as well as to the further development of the insurance market passed a resolution the President "On measures to further reform and develop the insurance market» №618 from April 10, 2007 which gave a significant boost to the development of the insurance industry in the country in which the directions of development have been identified, both the insurance market and the legislation on insurance activity. It can be assumed that the adoption of this decision began a new phase of development and improvement of the insurance market [1-4].
According to the program of reform and development of the insurance market of the Republic of Uzbekistan for 2007-2010, approved by the Decree of the President of the Republic of Uzbekistan, provides a number of activities aimed at:
• further improvement of the legislative and regulatory framework of insurance, insurance business and insurance supervision;
• expansion of the volume, range and quality of insurance services;
• Ensuring transparency and reliability of the domestic insurance market, increasing the level of capitalization of insurers, strengthen their financial stability and solvency;
• Improving the system of training, retraining and advanced training of security workers.
In order to unconditionally implement the provisions of the said decision of the President initiated and is currently under comprehensive work on the improvement of modern types of insurance services, improve the quality of insurance activity, gradual increase in the level of capitalization and financial stability of insurers, as well as the revision and implementation of international standards in the process of regulation and supervision of the insurance business.
Conducted a study of the insurance market in Uzbekistan showed that the insurance industry in the country is developing fast enough. Grow all indicators of insurance companies: the volume of collected premiums, payments made and received in the insurance liabilities. A growing number of professional partici-
pants of the insurance market: insurance companies, insurance brokers, Assistance companies.
Low demand for insurance services is not the lack of public and business awareness of the need to protect themselves from the risks and the allocation of the necessary funds, and lower competitiveness of the insurance products, compared with other methods reserve funds in case of adverse developments or events that could lead to a significant costs: investments in real estate, foreign currency, bank deposits and simply the accumulation of cash. [5]
The low competitiveness of the insurance products is linked with the fact that in some cases the insurance indemnity is not able to compensate for the costs associated with the occurrence of the insured event, as well as the uncertainty of insurers that the insurance indemnity will be paid at the times and in the amounts stipulated by the insurance contract.
In some cases, insurance standardization may be more productive than the development of standard rules and guidelines legally binding because the implementation of standards. There is a need to develop the same standards for motor vehicles insurance, freight and agricultural risks with further coverage of the system of standardization of other mass insurance types. Introduction of standards does not reduce the value of the developed states-term Insurance Inspectorate under the Ministry of Finance of the Republic of Uzbekistan guidelines and model regulations, as a tool for guidance to the insurance.
One of the main trends in the insurance market at present is to expand the scope of the compulsory insurance. In this trend, there are two main risks to increase types of compulsory insurance (this tendency in recent years). The first -an increase of transaction costs of business that is at odds with the course of the government to improve the business climate and reducing the tax burden on the business sector. The second - the displacement of compulsory insurance does voluntary insurance, which would have negative long-term consequences for the insurance market and the economy as a whole. It is no coincidence in foreign countries with a fairly wide arsenal of actions of compulsory insurance is introduced gradually and carefully. In theory and practice, worked out rules that compulsory insurance is introduced when the insured event the damage is not applied to the insured and third parties. This is primarily the responsibility insurance, and insurance of buildings from fire. Those areas where the risk is borne by the policyholder only a potential, usually are not covered by the compulsory insurance system [6].
At a time when the law "On compulsory insurance of civil liability of vehicle owners" valid for at least five years to introduce new types of compulsory insurance is inexpedient. The example of this law is necessary to study all the positive and negative impact on insurers and policyholders, and on this basis to create a national model of compulsory insurance.
In Uzbekistan, the existing system "conditioned" insurance (insurance mandatory by virtue of the contract) negative impact on competition in the insurance market and limits for the insured to choose insurance company. This is most
clearly manifested in obtaining loans entrepreneurs. In order to eliminate the negative effects of "affiliation" of the banks and insurance companies should introduce the institution of accreditation insurance companies with banks. Terms such accreditation should be clear and transparent, and the lists of accredited bank insurance companies should be public information for potential borrowers. More intense competition between insurance companies could contribute to resolution of commercial banks to sell its retail divisions of insurance products of any company.
At the "conditioned" insurance policy holder and the insurance carrier of interest (or beneficiary) are often different persons. However, in some cases, when signing the insurance contract is due to receive a license for a particular activity or registration of the export contract, it becomes unclear what is an insurable interest of government agencies. Conclusion of insurance contracts for public services should be prohibited regulations.
An important condition for raising the level of confidence in the insurance market should be increased access to information. It needs as consumers of insurance services and insurers themselves. Insurance companies must, like other financial institutions, to publish financial statements. It is necessary to improve the system of the published statistics, made available to the public aggregate statistics on the activities of insurance companies, including a breakdown of the business and the population, and the breakdown of the business - the scale of activity (even if the allocation of small businesses and branches of the economy). Insurers should be available to the state and institutional statistics needed for the risk assessment and the probable loss of various insurance products (number of accidents, morbidity and mortality from various causes, etc.) [7].
It is necessary to develop mechanisms of compulsory insurance of liability of auditors, customs brokers, liability under the contract and create a unified system of insurance legislation. Today, professional liability insurance is not a sufficient legal support. At the same time, professional liability insurance - the most promising "field" to extend the compulsory insurance system.
In the interests of consumers must be replaced with compulsory insurance of passengers on compulsory insurance of liability of carriers. This replacement is able to stimulate the transport industry in the direction of increasing the degree of safety and quality of services provided.
Whatever the quality services are not insurance companies, society and the economy there is always a need for mutual insurance. Most of all, this need where there is a large number of uniform small entities, the average high operating costs and the likelihood of insurance claims. In order to provide such community insurance services, it is necessary to develop mutual insurance companies, legal and regulatory framework which need to be developed. An example of the agricultural sector, where in fact there is a monopoly in the insurance market - is a good illustration of the fact that mutual insurance can not hurt. Accordingly, it is necessary to create a legal basis for mutual (cooperative) insurance.
It appears that to increase the efficiency of mutual insurance societies (MIS) and ensure their survival must be properly selected economic feasibility limits of their activities. Perhaps the activity Allied advisable to concentrate on insurance of small risks, big risks to transfer to insurance companies (by analogy with the operational objectives of credit unions, which give small compared to banks total loans to its members) [8-9].
In this regard, it is important to legislatively regulate in detail the provisions on the rights and responsibilities of members of MIS, MIS status as a nonprofit insurance organization, the functions and competences of management and control bodies, as well as reinsurance and tax issues in mutual insurance activity. The latter is very important, since insurers combined own funds, the last taxation for self-same insurance protection and thus are not intended to profit from insurance activities. Consequently, the turnover of such funds shall be subject to taxation.
Today, an increasing number of Life-companies increased the number of services they offer, a growing demand for life insurance products. These factors, in turn, are determined by performance indicators in the field of personal insurance:
- Increasing the number of clients;
- Expanding product line that is formed on the basis of a study of consumer preferences;
- Increased use of business entities in life insurance products, both as social protection, as well as motivational tools for personnel;
- Increased interest in the insurer's profession among students and students of national universities and others.
In addition to the efforts of insurers, there are many factors of social and economic nature in the republic, which also contribute to the development of the life insurance market:
- Demography (birth rates and the number of working-age population);
- The tax benefits (the possibility of a combination of insurance protection and savings funds with substantial savings);
- The growing population's need for quality control of health, education, family recreation (including abroad);
- The constant increase in the average income levels, raising the level of quality of life and interest in investing savings;
- Development of mortgage lending;
- The possibility of additional sales channels (similar financial supermarkets);
- Improving the legal framework and others.
Analysis of the insurance market of Uzbekistan, showed that in the development of the insurance market in recent years dominated by positive trends - sustainable growth indicators of the insurance market. This applies to: the volume of insurance premiums and payments; the number of companies; the size of the accumulated capital; stable growth. In relative terms, which include the share of
the insurance premium to GDP, the size of the insurance premium per capita, Uzbekistan is at best corresponds to the average level in the CIS [10].
It may be noted that it is necessary to form an official register of insurance agents, which should be recorded not only from the agent, but also the data of the company he represents. Insurance agents must have a professional qualification, confirmed by the qualification certificate; provide, upon request of the insured, information about the amount of remuneration in order to prevent speculative growth in the market shares of the companies to the detriment of their financial sustainability.
References
1. Law of the Republic of Uzbekistan "On obligatory insurance of civil liability of vehicle owners", April 21, 2008.
2. Law of the Republic of Uzbekistan "On insurance activity", May 28, 2002
3. Decree of the President of the Republic of Uzbekistan №286, April 17, 2006 "On measures to accelerate the development of the service sector in the Republic of Uzbekistan in 2006-2010".
4. Decree of the President of the Republic of Uzbekistan №1710,February 18, 1997 "On creation of the National Export-Import Insurance Company" Uzbekinvest ".
5. Decree of the President of the Republic of Uzbekistan №3022, January 31, 2002 "On measures for further liberalization and development of the insurance market."
6. Abramov V.Y. Insurance risk: definition and evaluation: legal aspects / V.Y.Abramov MM.: Ankil, 2006. - 128 p.
7. Rybin V. Insurance Basics. Tutorial. - M .: "KNORUS" 2010 - 240 p.
8. Igoshin N.A. Insurance Law. Tutorial. - M .: "UNITY - DANA" - 2010 - 167 p.
9. Turbine K.E. Global insurance market development trends / KE Turbine. MM: Ankil, 2000. - 320 p.
10. Abstract of the thesis of Umarov H.S. on competition candidate of econ. sciences. Moscow, 2013.
