According to a new report by Fitch Ratings, the credit foundations of Uzbekistan's insurance sector are strengthening due to an improved operating environment, enhanced prudential requirements, and sustainable growth in insurance premiums.
The agency noted that the improvement in the country's macroeconomic conditions is increasing the resilience of local financial institutions, including insurance companies.
In mid-2025, Fitch revised its outlook for the operating environment of Uzbekistan's insurance sector to 'Positive' following the country's sovereign rating upgrade to 'BB' in June 2025. Furthermore, in June 2026, the sovereign rating outlook for Uzbekistan was changed from 'Stable' to 'Positive'.
Insurance companies benefit from improved asset quality, higher minimum capital requirements, and the refinement of reserving and risk management practices. Fitch also indicated that the adoption of IFRS 17 standards and the improvement in public reporting quality contribute to greater transparency. Nevertheless, Uzbekistan's insurance sector still lags behind more developed markets, including Western European countries, across most of these indicators.
The life insurance segment remains the main driver of growth. In 2025, gross premiums in this segment increased by 36%, accounting for about 96% of total premiums. In the first quarter of 2026, gross premiums grew by another 54% compared to the same period in 2025.
Although the life insurance segment remains small, it has begun to recover after a sharp decline following the cancellation of tax incentives. Insurers' capitalization is also gradually improving as companies build up capital to meet higher minimum requirements introduced in October 2025. However, many companies continue to operate with limited capital buffers above the established regulatory norms.
Regulatory reforms are also positively affecting the mandatory motor third-party liability insurance segment. The increase in tariffs and coverage limits introduced in January 2026, along with widespread digitalization of insurance contract administration, has contributed to premium growth and improved underwriting results in the first quarter of 2026.
Fitch continues to assess risks in the sector as high. Insurance companies' business structures remain exposed to risks associated with financial risk insurance, which generates elevated underwriting risks, especially in stress scenarios. Additionally, the incoming reinsurance segment remains a potential source of volatility, and the growing share of real estate in insurers' investment portfolios may increase liquidity risk.
