American Insurance and Reinsurance Group
On March 1, 2024, the President of the Republic of Uzbekistan adopted a resolution “On comprehensive measures for the further development of the insurance market.”
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
In a proactive move to bolster sustainable practices and contribute to Uzbekistan’s burgeoning green economy, Mosaic Insurance Group’s CEO – Oybek N. Khalilov actively participated in the “Uzbekistan Green Economy” public-private sector roundtable discussion. The event, held at InterContinental Hotel, gathered key stakeholders to deliberate on strategies aimed at advancing environmental sustainability and fostering economic growth.
The interactive discussion provided a platform for diverse perspectives and innovative solutions, reflecting Mosaic Insurance Group’s ethos of collaboration and adaptability. As proposals were refined and finalized, participants collectively reaffirmed their dedication to fostering a sustainable, resilient economy for Uzbekistan’s future generations.
Mosaic Insurance Group’s active engagement in the “Uzbekistan Green Economy” roundtable exemplifies its unwavering commitment to sustainability, underscoring the pivotal role of the private sector in driving positive environmental change. By harnessing collective expertise and fostering partnerships, Mosaic Insurance Group remains steadfast in its pursuit of a more sustainable and inclusive future.
As Uzbekistan charts its course towards a greener economy, Mosaic Insurance Group stands ready to contribute its expertise and resources towards building a resilient and sustainable future for all.
A delegation of representatives of the Azerbaijani insurance market met in Uzbekistan for friendly discussions.
The CEO of Mosaic Insurance Group and the Chairman of the Association of the Insurance Market of Uzbekistan – Oybek N. Khalilov, the Chairman of the Association of Insurers in Azerbaijan – Elmar Mirsalaev, the Chairman of the Azerbaijan Bureau of Compulsory Insurance – Rashad Akhmadov, as well as a Member of the Supervisory Board of Qala Sığorta – Aydin Rakhmanov participated.
The meeting was an important step in strengthening cooperation between the two countries in the field of insurance.
Mr. Oybek N. Khalilov, CEO of Mosaic Insurance Group and Chairman of the Association of Professional Participants of the Insurance Market of Uzbekistan took part in a television program on the Ozbekiston 24 channel. During the live broadcast, he discussed with industry colleagues the urgent challenges facing the country’s insurance market and highlighted new prospects for industry.
Mr. Oybek highlighted several key aspects that determine the current state of the insurance market in Uzbekistan. He emphasized that in an ever-changing economic environment, insurance companies must be ready to adapt to new challenges and provide innovative solutions for customers.
One of the main issues discussed was improving the quality of customer service. Mr. Oybek emphasized the need to improve the processes of assessment and payment of insurance claims, which certainly helps to increase customer confidence in the industry as a whole.
An important aspect of the discussion was also the role of technology in the development of the insurance business. Mr. Oybek expressed the opinion that the introduction of modern technologies, such as digital platforms and data analytics, will help improve the efficiency of insurance processes and make them more accessible to a wider audience.
Potential new opportunities for the insurance market of Uzbekistan also became an integral part of the discussion. Mr. Oybek emphasized the importance of developing new products and services, as well as searching for new market segments, so that insurance companies can better meet the needs of their clients.
At the end of the program, the participants expressed confidence that dialogues of this kind contribute to the development of the insurance industry in Uzbekistan, facilitating its adaptation to modern challenges and opening up new prospects for the industry as a whole.
In 2022, Turkish World Insurance Association was established in Istanbul with the membership and participation of insurance associations of Azerbaijan, Turkey, Uzbekistan, Kazakhstan and Kyrgyzstan. How do you evaluate the advantages and new opportunities that this union will create for the countries of the Turkic world, and what are your main expectations from this union as Uzbekistan?
The establishment of the Turkish World Union of Insurance Associations in Istanbul on May 24th 2022, with the active participation of insurance associations from Azerbaijan, Turkey, Uzbekistan, Kazakhstan, and Kyrgyzstan, presents a significant step forward in fostering collaboration and synergy among the countries of the Turkic world. This union is poised to bring about several advantages and new opportunities, with substantial implications for Uzbekistan.
The union provides a platform for knowledge exchange and sharing of experiences among member countries. The lessons learned from events such as the Earthquake in Kahramanmarash (Türkiye, 2023) can be invaluable in enhancing disaster preparedness and response strategies across the Turkic world.
Collaborative efforts enable effective surveillance of policy renewals and building codes. By sharing best practices and collectively addressing vulnerabilities in risk-prone regions, the member countries can contribute to more robust risk management and mitigation strategies.
The union can collectively address the challenge of low insurance rates in risk-prone regions. By sharing insights and leveraging the combined expertise, member countries can work towards creating a more conducive environment for insurance uptake, ensuring better coverage and protection for their populations.
Recognizing the critical role of reinsurance in ensuring the solvency of insurance companies in the face of catastrophic events, the union can facilitate collaborative reinsurance arrangements. Pooling resources and risk-sharing mechanisms can strengthen the financial resilience of member countries’ insurance industries.
The union is expected to contribute to the growth of the risk capacity for incoming reinsurance in the region. By fostering collaboration, the member countries can attract increased reinsurance capacity, which is essential for managing large-scale risks associated with catastrophic events.
Uzbekistan can benefit from the union by enhancing its disaster resilience. Collaborative efforts within the association can lead to improved risk assessment and management practices in Uzbekistan. This, in turn, can contribute to more accurate underwriting, pricing, and overall risk mitigation within the country.
Uzbekistan can anticipate an increase in insurance penetration through joint initiatives aimed at addressing low insurance rates in certain regions. By learning from the experiences of other member countries, Uzbekistan can implement effective measures to boost insurance awareness and adoption.
The union provides Uzbekistan with enhanced access to reinsurance support in the face of catastrophic events. This is particularly crucial for maintaining the solvency of insurance companies and ensuring the availability of financial resources to support recovery efforts.
Uzbekistan can benefit from capacity building initiatives facilitated by the association. Training programs, knowledge-sharing sessions, and collaborative projects can contribute to the professional development of the insurance industry in Uzbekistan.
In conclusion, the establishment of the Turkish World Union of Insurance Associations presents a unique opportunity for the Turkic world to collaborate, share expertise, and collectively address challenges in the insurance sector. From Uzbekistan’s perspective, the union holds the potential to bring about positive transformations in disaster resilience, risk management, and insurance penetration, ultimately contributing to the overall growth and stability of the country’s insurance industry.
On December 23, 2023, an agreement on the creation of the international reinsurance capacity «Turan» was signed in Tashkent.
Leading experts and top managers of the foreign and domestic insurance and reinsurance markets, representatives of the press, regulators, and professional communities of Uzbekistan, Kazakhstan, Azerbaijan and Georgia were present at one of the large-scale business events in the field of reinsurance in 2023.
The «Turan» capacity will be an effective regional risk transfer mechanism, seeking to significantly strengthen risk management at the national and regional levels. This reinsurance structure will allow participants to gain access to a wide client base, expand their presence in the region and will contribute to the creation of a modern underwriting platform not only in the region, but also beyond its borders. This new mechanism will not only strengthen insurance protection for large-scale projects in Central Asia and the Caucasus, but also contribute to strengthening economic stability and mutual trust between participating countries.
The prestigious I AmChamPion Awards 2023 Gala in Istanbul on December 14 brought together over 300 public and private sector leaders, creating a platform for fostering collaboration and celebrating outstanding achievements. The star-studded event, held under the glittering lights of recognition, witnessed the presence of esteemed guests, including honorary speakers Presidency Investment Office President A. Burak Dağlıoğlu and US Ambassador Jeffry Flake.
One of the highlights of the evening was the insightful address by CEO of MIG and President of AmCham Uzbekistan, Mr. Oybek Khalilov. As a special guest, Mr. Khalilov shared valuable information about the burgeoning partnership between Uzbekistan, Turkey, and the United States in various sectors, emphasizing significant strides in the FCMG, construction, energy, IT, and finance.
The collaborative efforts between these nations underscored the growing importance of international partnerships in fostering economic growth and development. Mr. Khalilov’s remarks shed light on the interconnectedness of the global economy and the potential for mutually beneficial collaborations.
The Gala served as a nexus for networking, allowing leaders from diverse sectors to exchange ideas and explore avenues for future partnerships. The presence of esteemed personalities from both the public and private sectors created an atmosphere of camaraderie, emphasizing the shared commitment to innovation and progress.
CEO of Mosaic Insurance Group – Oybek N.Khalilov hosted a forum at the Tashkent State Economic University, where he presented data and trends analysis in the insurance market of Uzbekistan.
In his speech, Mr. Oybek drew attention to key aspects of the economic development of Uzbekistan. In the first half of 2023, the fastest growing industries were the IT and financial services. Insurance market continues to grow by 68% annually, despite the difficulties caused by the pandemic. This growth, however, has created challenges in the areas of staffing and training.
Attention was also drawn to the low level of insurance penetration in Uzbekistan compared to other countries, highlighting the program for creating a training center within the framework of Insurers Association.
The creation of a training center involves regular training for management and staff of insurance companies, which is an important step to solve the problems of outstaffing in the industry. Mr. Oybek expressed confidence in the successful development of the insurance market of Uzbekistan and in its contribution to the overall economic development of the country.
As part of the noble call to help children, AmCham Uzbekistan held the second CSR Ball dedicated to helping children with cancer together with the charitable foundation “Ezgu Amal”.
The event was hosted by CEO of Mosaic Insurance Group, Mr. Oyber N. Khalilov, as well as the President of the American Chamber Uzbekistan. The events attracted the attention of business and government officials who participated in their efforts to make a philanthropic contribution to pediatric cancer counseling.
The total amount of participation in the event was UZS 160,000,000. These funds were immediately sent to charity foundation.
As a result, awards were also given to companies that demonstrated outstanding results in social projects.
Mosaic Insurance Group is committed to social responsibility and supporting community initiatives. Participation in such events is not only a chance to contribute to public welfare, but also an essential element in creating a positive image of business in the country.
This event was not only a brilliant example of cooperation between the business sector and non-governmental organizations in Uzbekistan, but also a confirmation that corporate responsibility and social projects play a major role in engaging and developing sustainable society.
The insurance market of Uzbekistan continues its stable growth, increasing by a significant 67-68% annually, despite the challenges posed by the pandemic. However, this impressive growth has revealed serious challenges in staffing and training.
In response to these challenges, the Association of Insurers, chaired by Oybek N. Khalilov (CEO of Mosaic Insurance Group), introduced a new initiative step – the creation of a Training Center for Advanced Training. This project is being implemented in the state with the Tashkent Institute Of Finance with the support of the Ministry of Economy and Finance of the Republic of Uzbekistan and the UN within the framework of the “Insurance and Risk Finance Facility” project.
Proposals made within the framework of the project include regular training for employees of insurance organizations. Highlights of the initiatives include:
1. Senior management training: 40 academic hours.
2. Training for middle managers: 80 academic hours.
3. Training for managers and entry-level employees: 100 academic hours per year.
The signing of a memorandum between the UN, the Tashkent Institute Of Finance and the Association of Professional Participants of the Insurance Market of Uzbekistan became a key stage in the implementation of this project. This strategic partnership will allow us to effectively combine efforts to improve the skills of personnel and ensure the sustainability of the insurance market of Uzbekistan in the future.
