BAKU, Azerbaijan, Mar. 18
By Ilkin Seyfaddini – Trend:
Fitch Ratings noted the positive effects of reforms in Uzbekistan, Trend reports referring to the agency's published report.
The establishment of a new regulatory and supervisory body to coordinate multiple regulatory changes in the insurance sector, successful execution of the modernization plan and the overhaul of the prudential framework will be credit-positive for Uzbek insurers in the long term.
It is expected that insurance sector's contribution to GDP will to grow to 0.8 percent by 2022 from 0.4 percent in 2018, and gross premiums written to increase to $478 million (as per Fitch-forecast average annual exchange rate) from $203 million, as a result of the reform.
The qualitative improvements in sector expertise, including full transfer to International Financial Reporting Standards (IFRS) by end-2021, and implementation of modern prudential regulations and in-house risks management practices, such as a strengthened role of actuaries, are the most challenging part of the reform.
Fitch Ratings is an American corporation mainly known as a rating agency. Along with Standard & Poor's and Moody's, Fitch Ratings is one of the "big three" international rating agencies.
The main objective of the agency is to provide the global credit markets with independent and forward-looking creditworthiness assessments, analytical research and data.
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