The National Bank of Tajikistan (NBT) has presented the procedure for calculation by insurance (reinsurance) company of standard ratio between its own resources (assets) and commitments made.
Reinsurance companies, also known as reinsurers, are companies that provide insurance to insurance companies. In other words, reinsurance companies are companies that receive insurance liabilities from insurance companies.
The NBT press center says this document meeting international norms of regulating the insurance system has been developed in Tajikistan for the first time.
The procedure has reportedly been developed for the purpose of ensuring financial-and-economic sustainability and solvency of insurance (reinsurance) companies.
The procedure regulates the following directions of activities of insurance-reinsurance companies: minimum solvency margin; calculation of the actual solvency margin; solvency margin adequacy ratio; liquid assets adequacy ratio; asset diversification standard; and reporting on compliance with standards.
Recall, the Tajik government has revised minimum capital requirements for insurance companies upwards to 2 million somonis and 50 million somonis, depending on the forms of property (current minimum capital requirements for insurance companies are 500,000 somonis and 40 million somonis). The companies should have increased their authorized capitals until April 1, 2021.
The authorities justified this decision by saying that “the share of insurance penetration into the economy is equal to only 0.7 percent of the country’s gross domestic product (GDP), which is one of the lowest rates in the world, and this indicator directly depends on the low requirements for the authorized capital.”
Xprimm.com notes that at the end of the third quarter of 2020, the insurance market in Tajikistan expanded by 4.05% to 175.30 million somonis. At the same time, again, growth was provided by voluntary types of insurance, while compulsory insurance continued the downward trend, according to data published by the National Bank.
Nineteen insurers now operate in Tajikistan insurance market, including two state-run insurance companies (Tojiksughurta and Tojiksarmoyaguzor), 16 non-state insurers and one mutual insurance support center.
The most active insurers of the private sector are Spitamen-Sughurta and MUIN.
Among the prevailing classes in the market it is worth noting property insurance, personal insurance, liability insurance and life insurance.
