Why is this important
This is a signal to the insurance market: regulators are strengthening control, especially in terms of capital and compliance with standards. Increased discipline can cleanse the market of weak players and strengthen customer trust.
What happened
- Global Insurance Group has been fined 35 million soums and its license has been frozen until October 18.
- Semurg Insurance — a fine of 31.5 million soums, deprived of a license for compulsory insurance due to non-compliance with the authorized capital (requirement — 50 billion soums).
- Inson — fine of 40 million soums.
- Alskom sug’urta kompaniyasi — fine of 50 million soums.
- The NAPP decision indicates that the violations are related to non-compliance with financial regulations.
Context
The IMF’s recommendations to Uzbekistan have already emphasized the need to refine insurance sector legislation, as current norms are adapted for JSCs, not specifically for insurers. Increased supervision can lead to structural changes in the market: players with an unstable financial base may be forced to leave or restructure.
For clients, this may mean an increase in the reliability of insurance companies, but in the short term — an increase in the cost of services or tightening of requirements for insurers.
