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.