THE DEVELOPMENT OF INSURANCE SERVICES IN UZBEKISTAN: MARKET TRENDS, BARRIERS TO EXPANSION, AND DIGITAL TRANSFORMATION PROSPECTS

Abstract

This study examines the current state and development dynamics of the insurance sector in Uzbekistan, with a focus on market penetration, structural challenges, and emerging digital trends. Despite recent regulatory reforms and the adoption of the “Strategy for the Development of the Insurance Market in the Republic of Uzbekistan for 2023–2027,” insurance awareness and coverage remain low—especially among individuals and SMEs. A survey of 14 insurance agencies and 22 small business owners across Tashkent and Samarkand was conducted in April–May 2025. Results show that motor third-party liability (MTPL) and compulsory health insurance dominate the market (86% of policies), while voluntary insurance products (e.g., property, business interruption, cyber risk) are underutilized (<15%). Key barriers include low financial literacy (79% of SMEs), lack of trust in insurers (64%), and limited product customization. However, 62% of insurers report active investment in digital platforms, signaling early-stage digital transformation. The findings suggest that sustainable growth of the insurance sector requires coordinated efforts in public education, product innovation, and regulatory support for insurtech. This research contributes empirical insights into insurance development in Central Asia and offers policy recommendations for inclusive risk protection.