LocationsUNDP increases capacity of the insurance industry
November 4, 2024
The United Nations Development Program (UNDP), in cooperation with the National Agency of Perspective Projects of the Republic of Uzbekistan, conducted a training for the insurance market regulator and insurance sector specialists on the topic “Introduction to the Solvency II Directive” with the involvement of an international expert.
Solvency II sets out requirements applicable to insurance and reinsurance companies in the European Union (EU) with the aim to ensure the adequate protection of policyholders and beneficiaries. Solvency II has a risk-based approach that enables to assess the “overall solvency” of insurance and reinsurance undertakings through quantitative and qualitative measures.
The main goal of the training is to strengthen institutional systems, processes, and governance based on the understanding of the Solvency II directive of the participants in the insurance market of Uzbekistan, both at the level of government and insurance companies. To conduct the training, an international expert, Professor Karel Van Hulle, who has extensive experience in insurance market regulation in European Union (EU) countries and is one of the developers of the Solvency Requirements for EU Insurers, was invited. Over the course of two days, the training participants strengthened their knowledge in the role of insurance and the development of Solvency II, the quantitative and qualitative requirements of Solvency II, the role of regulators in Solvency II, building a risk-based Solvency regime, and other topics on risk management in the insurance industry.
The training was held on October 29–30, 2024, in Tashkent with the participation of more than 40 participants representing the National Agency of Perspective Projects, the Association of Professional Participants of the Insurance Market, insurance companies, and other agencies from the government and the private sector.
Positive feedback was received from training participants on the conducted training; it was noted the relevance of the training topic and the knowledge gained with relevant examples based on international practice, an interesting and interactive method of presenting information.
Kamoliddin Abdurakhimov, Director of the Association of the Professional Participants of the Insurance Market of Uzbekistan: capacity building is the cornerstone for the development of the insurance industry in Uzbekistan. The Solvency II regime provides a unique and sustainable way to develop, protect, and regulate insurance; therefore, the participation in the training was very useful and important for the representatives of the insurance market of Uzbekistan.
Orifjon Fayziev, Head of Insurance Market Development Department, the National Agency of Perspective Projects: Insurance is one of the most effective tools for protection from the various risks. Uzbekistan puts an ambitious aim for further development of the insurance market, including compliance with the Solvency II directive. Regulation of the insurance market requires more and more efforts due to the constant increase of the different risks around the world. Risk management in the insurance industry is crucial to the maintenance of sustainable development in the industry. Participation in the training on Solvency II gives both the insurance regulator and the insurance industry important knowledge and indicates the clear way for further development of the insurance market aimed at economic growth and protection of the people of Uzbekistan from arising risks.
Professor Karel Van Hulle, an international expert: It is a big honour for me to conduct a training on Solvency II in Uzbekistan. I would like to notice that Uzbekistan has a tremendous potential for the development of the insurance in the country that will provide sustainable economic growth and protection the people of Uzbekistan from various risks. An organisation of the training on Solvency II has critical impact as the strengthening capacity and is the crucial first brick that opens the road for further development of the insurance market of Uzbekistan. To be in compliance with the Solvency II regime requires a step-by-step mutual cooperation and enormous efforts in each step of the long way, both from the government and insurance industry of the country.”
The training was supported within the framework of the UNDP global project “Insurance Risk Finance Facility (IRFF) in Uzbekistan” financed by the German government, the main objective of which is to provide support to countries participating in the project in the development of the insurance market of Uzbekistan, including: integration of insurance policy into the country’s economic development program, development of inclusive insurance, financing sovereign risks, risks from natural disasters, attracting additional investments in the insurance industry, etc.
