CEO Khalilov O.N. took part in the PWC Uzbekistan edition of the 26th annual survey of CEOs of the world’s largest companies, conducted in 2023. The study identified key trends in the impact of global and local events on business processes, profitability and private sector transformation. Most leaders expect a decline in the global economy due to geopolitical risks and other factors, but Uzbekistan’s internal potential and reforms create optimistic prospects. Top threats include geopolitical conflicts, inflation and health risks. Attention to ESG issues is growing, although Uzbek companies still lag behind in decarbonization. The study also highlights the impact of climate risks on businesses and skills shortages. The country’s investment attractiveness and the fight against corruption have become key development priorities.
The survey results were possible due to the professionalism of the respondents, which makes the study objective. For example, CEO at Mosaic Insurance Group Mr. Oybek N. Khalilov identified strategies in response to economic uncertainty: Job retention and team performance; Increased investment to support growth; Development of alternative suppliers and diversification; Adaptation to changes in the market, including price increases; Development internationally, especially in the Middle East and Turkey.
Mosaic Insurance Group is actively developing in the markets of the Middle East and Turkey, focusing on energy projects and strategic areas. In addition, given the American background and investors, company also pays attention to the US and Chinese economies.
Expectations for the next 10 years include fewer insurance companies and greater capitalization. Disruptive technologies such as online platforms will be key to changing the industry by increasing the accessibility of products and services.
Supply chain disruptions and regulatory changes will have a moderate to large impact, respectively. The lack of qualified specialists in the industry creates challenges for its development, so it is planned to develop vital specialties such as actuaries and underwriters.
According to Mr. Oybek, there is a very important open issue in the insurance market at the stage of discussions with the Regulator. The Ministry of Finance so far prefers a simpler increase in the authorized capital rather than the necessary changes in the calculation of reserves: for example, the Regulation on the calculation of reserves is already more than 15 years old, as a result of which an insurance company assumes risks in the amount of 1 B US dollars, while making a reserve only for its small share of retention, which does not even reach 1 M US dollars. There were cases when such a situation even reached disputes in court, and the Regulator could not prove that in fact the insurance company should have reserved in accordance with the risk of 1 B US dollars that they assumed. This is all due to the fact that insurance companies are insolvent. But the trend in the market and the proposal that the Association of Insurance Market Participants comes up with is the fastest possible transition to the Solvency II Directive and Risk based capital, and the introduction of new provisions on reserving.
Mr. Oybek emphasizes the importance of activity, adaptability and reputation for successful leadership in the modern business environment. His belief in working with integrity, matching words with actions and avoiding corrupt practices reflects his principles of integrity and professionalism. It encourages honesty and transparency in all business dealings, emphasizing that an honest approach to business is the key to success and sustainable development.
Find more: https://www.pwc.com/uz/en/assets/uz-ceo-survey-2023-rus-final.pdf
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