BAKU, Azerbaijan, Nov. 20
By Klavdiya Romakayeva - Trend:
The activities of insurance companies will be profitable in the coming year, despite the economic impact of the pandemic on the general insurance sector, Trend reports citing an assessment by S&P Global Ratings of industry and country risks in the general insurance sector in Uzbekistan.
S&P Global Ratings estimates industry and country risks of the general insurance sector in Uzbekistan as high - as in Russia, Azerbaijan, India, Kenya, and Turkey.
S&P Global Ratings says that country risks in Uzbekistan will continue to put pressure on the overall assessment of the industry and country risks of the insurance sector (Insurance Industry and Country Risk Assessment - IICRA).
“We believe that the economic situation will remain unfavorable for Uzbek insurance companies in the next two years. Economic risks remain high given the low levels of well-being of the population, as measured by GDP per capita ($1,585), and the underdeveloped institutional system. In our opinion, the Uzbek economy will absorb the current instability, and its growth may resume by an average of 5 percent in 2021-2022,” the information says.
S&P Global Ratings assesses IICRA as still a weak, but gradually developing an institutional system in Uzbekistan.
“We expect insurance companies to be profitable in the coming year, despite the economic impact of the pandemic on the general insurance sector. This market is likely to see slight growth in 2020 due to a slowdown in economic activity”.
According to S&P Global Ratings, growth rates will pick up in 2021-2022 and will largely depend on regulatory measures aimed at further development of the insurance sector, the supply of new products, and the dynamics of macroeconomic indicators.
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