REINSURANCE SYSTEM IN UZBEKISTAN AND ITS DEVELOPMENT PROSPECTS

Abstract

Reinsurance plays a fundamental role in ensuring the financial stability and risk management capacity of insurance companies by allowing them to transfer portions of their risk portfolios to other insurers. In Uzbekistan, the reinsurance system is developing alongside the broader insurance market, which is experiencing steady growth due to economic reforms and increased investment activity. Despite existing legal provisions for reinsurance transactions, domestic capacity remains limited, and significant portions of risk are ceded to foreign reinsurers. This study examines the structure of Uzbekistan’s reinsurance system, analyzes its strengths and weaknesses, and explores opportunities for modernization and development. The research employs legal analysis, comparative study of international practices, and evaluation of market data. Findings suggest that strengthening domestic reinsurance capacity, adopting risk-based supervision, enhancing digital risk modeling tools, and fostering public-private partnerships are essential for sustainable growth. The study concludes that modernization of the reinsurance framework will contribute to financial stability, capital retention, and the long-term development of Uzbekistan’s insurance sector.