The insurance market situation in the first half of 2021

On July 14, 2021, at the National Bank of Tajikistan, under the chairmanship of Hokim Kholikzoda, Chairman of National Bank of Tajikistan, a working meeting was held with participation of representatives of country's insurance organizations and heads of NBT departments to summarize results of insurance market for the first half of the year and determine next tasks for the second half of 2021.

Opening the meeting, NBT Chairman Hokim Kholikzoda has underlined that the insurance market is one of significant segments of modern financial system, which contributes to solution of important socio-economic issues.

“The National Bank of Tajikistan, as a regulatory institution, approving necessary measures aimed at strengthening the regulatory framework, regulation, controlling effectively developing insurance services and ensuring protection of rights and legitimate interests of policyholders and the state makes significant contribution towards development of country's insurance market. Analysis of insurance market and indicators of country's insurance organizations suggests that insurance sector is gaining a strong position in country's financial market. In particular, in the first half of 2021, the volume of investments of insurance organizations in financial system reached 294.1 million TJS, 258.8 million TJS of which accounted for shares of other organizations, 34.0 million TJS for deposits of credit institutions and 1, 3 million TJS for other investments, and taxes paid to the state budget by insurance organizations for this period amount to 9.8 million TJS, which is 71.7% more compared to the same period of 2020” has declared HokimKholikzoda.

Hokim Kholikzoda, Chairman of National Bank of Tajikistan also has emphasized that timely enforcement of Resolution of the Government of the Republic of Tajikistan dated from March 31, 2020 No. 211 "On minimum amount of authorized capital (fund) of insurance (reinsurance) institutions" allowed insurance institutions to increase their authorized capital in the first half of 2021 to 232.6 million TJS, which is 89.9% more than in the first half of 2020. This was also facilitated by appearance of two newly established insurance institutions in the country's insurance market (their total authorized capital is 22.0 million TJS).

H. Kholikzoda, Chairman of NBT also touched upon such important issues as cooperation of insurance institutions with other sectors of national economy, use of opportunities for development of activities, etc. It was mentioned thatcountry's insurance institutions should take urgent measures to improve quality of services provided, expanding the range of new products, strengthening awareness-raising among population, improving financial performance and diversifying insurance services.

Then Dilbar Khuseynova, Head of Insurance Supervision Department of NBT has made a presentation on topic "The insurance market situation in the Republic of Tajikistan in the first half of 2021" and spoke about main indicators of insurance market and changes in this segment, as well as about problems and prospects of the second half of 2021.

At the same time, it was noted that as of June 30, 2021, 19 insurance institutions operate in the Republic of Tajikistan, their assets as of reporting date amount to 513.6 million TJS which is 28.1% more compared to the same period of 2020. The assets of insurance system in relation to GDP exceeded 1.0% and for the first time amounted to 1.3% of GDP. In January-June 2021, insurance institutions have concluded 921,792 insurance contracts, which is 187,743 more than in the same period last year.

After presentation, participants expressed their views on challenges and opportunities in theinsurance industry.

In conclusion, Chairman of NBT summing up results of insurance market for the first half of 2021, emphasized the need to take timely measures in this direction, in particular: ensuring implementation of the Government of the Republic of Tajikistan Decree dated from March 31, 2020 No. 211 "On the minimum amount of authorized capital ( fund) of insurance (reinsurance) organizations ", effective allocation of funds, interaction among insurance institutions and credit financial institutions in the field of banking products insurance,establishment of Supervisory Board in the insurance institutions, establishment of regional representative offices, provision of new insurance services, strengthening public relations in order to increase insurance education, inclusion of insurance institutions in theNational Association of Insurance Organizations of Tajikistan, ensuring compliance with financial indicators, simplifying procedure for insurance payments, transparency, conducting explanatory works through media and social networks.

Press Division