Ingosstrakh and INGO-Uzbekistan talk Uzbek insurance development

Ingosstrakh’s CEO Mikhail Volkov and Deputy CEO for external relations Ilya Solomatin joined INGO Uzbekistan CEO Bakhtiyor Gaybullaev at a press conference on Russian-Uzbek cooperation in the insurance sector, as part of an international CIS Finance and Banking Forum running from 27 to 31 March.

In 2018 the market raked in 1.6 trillion soums ($200m) in insurance premiums, including 1.2 trillion soums ($150m) through blanket insurance (up 54.4% year on year), and paid out 460.8 soums in settlement. Life insurance premiums tripled to around 400 billion soums ($50m).

INGO Uzbekistan’s premiums in 2018 rose by a quarter to 27.8b soums, with payments up by a little over 100% to 3.1b soums. The insurer topped travel insurance and was one of the leading insurers of liability, cars (optional), and real estate. Its premium reserves grew by a half to 27.2 billion soums, with assets reaching 59 billion soums (up 28%)

The executives stressed the importance of an anticipated five-year state program for insurance development, which they expect to include an increased charter capital minimum, a reformed compulsory car insurance system, and new compulsory insurance policies.

 “Uzbekistan’s insurance market has a huge capacity for development, and our company stays on the course of an expanding branch and agency network, a widening product portfolio and better customer service. We’re setting ambitious targets to bring more insurance premiums and to stay in the TOP-8 Uzbek companies, and we’ll meet these targets. We will integrate INGO Group’s best practices into our day-to-day operations and invest in our competencies in underwriting and indemnification,” said Gaybullaev.

“Uzbekistan, as the fastest growing economy in Central Asia, has a great growth potential in its insurance market, and Ingosstrakh aims to expand its presence in the region,” said Volkov. “Our company remains highly competent in terms of various types of insurance and is ready not only to support our subsidiary via consultancy and methodology, but to help the regional market grow.

“Ingosstrakh has given its subsidiary reinsurance capacities, helps with risk assessment and underwriting, and, if needed, takes part in loss examination. We also plan to back investments in INGO Uzbekistan’s staff and to retrain our personnel through our university. In addition, we are ready to share our experience in CCI, offering our expertise in e-CCI and European Accident Statements, which are already being used in Russia and are set to enter Uzbekistan in the foreseeable future”

The speakers also announced they launched a social project to help insure Uzbekistan’s migrant workers in Russia, Kazakhstan and Kyrgyzstan.

INGO Uzbekistan then announced the launch of its operations in CCI. In its pilot program in Jan-Feb 2019 the company sold 1300 policies, taking 16.2 billion soums in liabilities.