Fitch Sees Improving Fundamentals in Uzbekistan Insurance

Tashkent, Uzbekistan (UzDaily.uz) — An improving operating environment, stronger prudential requirements and sustained growth in insurance premiums are supporting the credit fundamentals of Uzbekistan’s insurance sector, Fitch Ratings said in a new report.

The agency noted that improving macroeconomic conditions in the country are strengthening the resilience of local financial institutions, including insurance companies.

In mid-2025, Fitch revised its outlook for Uzbekistan’s insurance sector operating environment to “Positive” after raising the country’s sovereign rating to “BB” in June 2025. In June 2026, the outlook on Uzbekistan’s sovereign rating was also revised from “Stable” to “Positive”.

Insurance companies are benefiting from improved asset credit quality, higher minimum capital adequacy requirements, and better reserving and risk management practices.

Fitch also cited the adoption of IFRS 17 and improved quality of public disclosures as factors supporting greater transparency. At the same time, Uzbekistan’s insurance sector still lags more developed markets, including Western European countries, on most of these indicators.

The non-life insurance segment remains the main source of growth. In 2025, gross written premiums in the segment increased by 36%, accounting for about 96% of total premiums. In the first quarter of 2026, gross premiums increased by another 54% compared with the same period in 2025.

The life insurance segment remains small but has begun to recover following a sharp contraction after tax incentives were abolished.

Insurers’ capitalization is also gradually improving. Insurance companies have been increasing their capital to comply with higher minimum requirements introduced in October 2025. At the same time, many companies continue to operate with limited capital buffers above minimum regulatory requirements.

Regulatory reforms are also having a positive impact on the compulsory third-party motor liability insurance segment. Higher tariffs and coverage limits introduced in January 2026, along with extensive digitalization of insurance contract administration, contributed to premium growth and an improved underwriting result in the first quarter of 2026.

Fitch continues to assess risks in the sector as high. Insurance companies’ business structures remain exposed to risks associated with financial risk insurance, which creates elevated underwriting risks, particularly under stress scenarios.

The inward reinsurance segment also remains a potential source of volatility. In addition, a growing share of real estate in insurers’ investment portfolios could increase liquidity risk.