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RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of August 2, 2019 No. PP-4412

About measures for reforming and ensuring the accelerated development of the insurance market of the Republic of Uzbekistan

(as amended of the Presidential decree of the Republic of Uzbekistan of 09.11.2021 No. UP-3)

In the republic measures for creating favorable conditions for further development of the financial market, expansion of scales of scope of the population with high-quality financial services, support of activities of insurance companies, and also protection of the rights and legitimate interests of consumers in this sphere consistently are implemented.

At the same time at the present stage of reforms active development of the financial services aimed at providing stable growth of economy, improvement of quality and population level of living causes strengthening of role of the insurance market and broad use of instruments of insurance in the republic.

For the purpose of further reforming and ensuring dynamic development of the national insurance market, implementation of new demanded types of insurance services, increase in consumer confidence to the insurance market, and also according to the State program on strategy implementation of actions in five priority directions of development of the Republic of Uzbekistan in 2017 - 2021 in "Year of active investments and social development":

1. Determine the main directions of reforming and the accelerated development of the insurance market of the Republic of Uzbekistan:

enhancement of regulatory framework in the sphere of insurance, including consecutive implementation of standards and recommendations of the international organizations and the best world practices in this sphere;

the institutional development of system of regulation of insurance activity aimed at providing reliability and stability of the insurance market by implementation of effective mechanisms of regulation and prudential supervision;

increase in level of capitalization, solvency and financial stability of professional participants of the insurance market, improvement of quality of their assets, and also development of investing activities of insurers;

development and expansion of infrastructure of the insurance market by activization of activities of insurance brokers, enhancement of system of work of insurance agents, implementations of mechanisms of bancassurance, and also increase in role of professional participants of the insurance market in general;

strengthening of consumer protection of insurance services and other subjects of insurance activity, increase in insurance literacy of the population and their trust to insurance, ensuring openness and transparency of the insurance market;

expansion of amounts, range and improvement of quality of the provided insurance services by implementation new innovative and developments of traditionally demanded insurance products;

wide use of modern information technologies in the sphere of the organization and regulation of insurance activity, active implementation and development of electronic types of insurance services;

enhancement of system of preparation, retraining and advanced training of specialists of the insurance market, application of modern training methods, stimulation of research activities in the sphere of insurance;

forming and maintenance of positive image, and also increase in investment appeal of the national insurance market, including by means of its integration with the international and foreign insurance markets.

2. Approve:

"Road map" on the accelerated development of the insurance market of the Republic of Uzbekistan for 2019-2020 (further - "Road map") according to appendix No. 1;

Target indicators of the accelerated development of the insurance market of the Republic of Uzbekistan for 2019 - 2022 according to appendix No. 2.

Assign to heads of the ministries, departments, public authorities on places and other organizations the personal responsibility for timely, complete and high-quality implementation of actions provided by "Road map" and also achievement of target indicators.

3. Agree with offers of the Ministry of Finance, Ministry of Economy and Industry, Ministry of development of information technologies and communications of the Republic of Uzbekistan:

about step-by-step increase during 2020 - 2022 in the minimum sizes of the authorized capital of the insurers differentiated depending on types of insurance activity according to appendix No. 3;

about increase up to 50 percent from authorized capital of limiting insurance company of the size of the reserve fund of insurance company created due to assignments at the rate to 20 percent of the income with their reference to deductible expenses;

about implementation of the mechanism of execution of electronic policies (E-policy) on separate types of insurance, including on the Internet, mobile applications, self-service terminals, having equated them to agreements (policies) of insurance on papers.

4. Determine that since January 1, 2020:

the rate of single tax payment for legal entities - insurance (reinsurance) brokers and insurance agents is determined in the amount of 13 percent from commission fees;

participation of the insurance (reinsurance) organization in authorized capitals of other insurance (reinsurance) organizations, except for participations in authorized capitals of insurance companies of other industry of insurance on the terms of restriction of their mutual participation is not allowed;

the authorized state body on the basis of the analysis of the insurance rates applied by insurers, consumer satisfaction level quality of insurance services, and also efficiency of insurance products establishes the minimum level of the insurance reserves providing their adequacy to the accepted risks of insurance.

5. Implement since October 1, 2019 procedure according to which before transfer of insurance bonds to reinsurance to foreign insurance companies the reinsurer (the reinsurance broker) shall direct offers on reinsurance (the offer to sign contracts of reinsurance) in the amount of at least 50 percent of the transferred obligations to the insurance companies having the right to perform reinsurance activities in the territory of the Republic of Uzbekistan. At the same time:

conditions of the offer shall correspond to conditions of transfer of insurance bonds to reinsurance to foreign insurance companies;

the acceptance or non-acceptance of the offer by overcautious persons - domestic insurance companies is performed no later than two working days if in the offer later term for the acceptance is not specified;

insurance bonds are assumed by the overcautious person - domestic insurance company within amount of own deduction;

the overcautious person - domestic insurance company in case of loss occurrence and implementation of insurance payment for the basic agreement of insurance follows decisions of the reinsurer within terms of the contract of reinsurance.

Determine that requirements of this Item do not extend to obligatory reinsurance and are not applied in cases if international treaties and investment agreements of the Republic of Uzbekistan provide other procedure.

6. Determine that the privilege on income tax regarding the means directed to payment of the insurance premiums paid to the legal entities having the license for implementation of insurance activity in the Republic of Uzbekistan on long-term insurance of life (industry of life insurance of all classes) is applied under following conditions:

a) in case of lump sum payment of insurance sum not earlier than 12 months from period start date of insurance under the agreement. At the same time payment of insurance premiums shall be performed on not increasing procedure during 12 months preceding payment date of insurance sum.

In case of approach under the agreement of insured event of other, than survival of insured person to certain age or term on long-term insurance of life (all classes of industry of life insurance), payment of insurance indemnity or insurance sum can be performed before 12 months from period start date of insurance under the agreement using the specified privilege;

b) in case of the beginning of payment of rent (annuity) not earlier than 12 months from period start date of insurance under the agreement. At the same time the amount of actually accumulated funds (reserve) under the contract for payment date of the current rent (annuity) shall not be less quadruple size of the specified rent (annuity);

c) in case of the beginning of payment of rent (annuity) before 12 months from period start date of insurance under the agreement. At the same time the amount of actually paid insurance premiums for the beginning of payment of initial rent (annuity) shall not be less annual size of insurance premium under the agreement and payment of rents (annuities) shall be performed with observance of the requirement of the subitem "b" of this Item.

In case of deduction and budget contribution of income tax at source of payment by the insurer in connection with early termination of the agreement of long-term insurance of life or violation of requirements of this Item by the insurer the certificate of the amount of the got insurance premiums, the retained tax on the income of physical persons and the returned means is issued to the insurer.

7. Implement, since 2020/2021 academic years, procedure for acceptance of workers of professional participants of the insurance market on the correspondence and evening departments in the direction of education "Insurance case" of profile highest educational institutions on paid and contractual basis out of the established acceptance quotas without conducting tests.

At the same time acceptance in the highest educational institutions is performed following the results of interview and under condition:

availability at the worker of general average or secondary vocational, professional education and practical length of service at least 2 years in the insurance market;

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