The first nine months of 2007 are characterized by the activation of insurance market, stipulated by the entrance of new players and increase of growth rates of the sector, according to specialists of SAIPRO company’s financial analysis and rating department.

Two new insurance companies, carrying out activity in the field of general insurance, were founded in Uzbekistan in January-September this year, and the Uzbek insurance market had 26 operating insurers as of 1 October 2007.

The concentration of the Uzbek insurance market is at a high level, although there is observed its gradual decrease. Thus, on results of the first nine months of 2007, the largest insurance company of Uzbekistan – UzbekInvest national export-import insurance company – had market share of 23.4%, against 24.6% in the same period of the previous year.

The share of five leading companies on the volume of insurance premiums – UzAgroSugurta (agriculture), UVT Inshurans (export freights), Standard Insurance Group (airways) and Kafolat – accounted for 74.1% of the total premium collection. At the same time, these five insurers accounted for 80.6% of the Uzbek insurance market in January-September 2006, and for 82.2% in the same period of 2005.

Ten leading companies, including the next five leaders – Asia Inshurans, Kapital Sugurta, Transinsurance Plus, and Alfa Invest – accounted for 85.9% of the total insurance premiums in the reporting period, against 91.4% in the same period of 2006.

Such decrease of the level of concentration, according to SAIPRO analytics, demonstrates the gradual growth of the competition in the insurance market of Uzbekistan. Experts believe that the latter should have a positive effect on the financial stability and reliability of insurance transactions.

It should be noted that decrease of the concentration of insurance market occurs due to voluntary types of insurance, although the sector of voluntary liability insurance is still the most concentrated.

On results of the first nine months of 2007, the share of the largest insurance company made up 22.8% in personal insurance, which is 6.1% less compared with the same period of the previous year, 27.5 – in property insurance (down by 1%).

The share of five leading companies in personal insurance comprised 62.9% in the reporting period (decrease by 6.3%), in property insurance – 75.8% (-7.1%). The share of ten leaders made up 82.8% (-5.7%) and 88.8% (-5.4%) respectively.

As to the segment of voluntary liability insurance, one insurance company covered 60.4% of the total insurance premiums in January-September 2007, which is 3.7% more year-on-year. At that the share of five leading companies fell by 4.3% to 88%, and the share of ten leaders was down by 1.5% to comprise 95.9%.

Meanwhile, the compulsory insurance segment saw the increase of the level of concentration. Moreover, only 14 companies provided services in the field of compulsory insurance in January-September 2007. Thus, the share of largest insurer on this type of insurance makes up 49.1% (up by 2.2% year-on-year). The share of five leading insurers grew by 2%, and that of ten leaders fell by 0.1%.

Source: UzReport.com