Press release issued by Tajik private insurance and reinsurance company, Spitamen-Insurance, says it has been awarded the Eurasian Union of States’ Golden Order “For Labor and Valor”.
According to the press release, this order is a public award and was established to reward for especially outstanding achievements and successes in the field of economic, scientific-technological and social-cultural development of society, professional achievements in activities, significant contribution to the socioeconomic development of the country, as well as strengthening peace and developing cooperation with international organizations.
Candidates for the nomination are reportedly selected by an expert council, International Organizing Committee for Public Awards and Titles.
Besides, Spitamen Insurance has reportedly also become the holder of award of the prestigious republican competition, dubbed “Brand of the Year 2022”. The company has reportedly got the order in the “Insurer of the Year” nomination.
The private insurance and reinsurance company, Spitamen Insurance, has operated in Tajikistan since 2009, offering all types of insurance and reinsurance services.
Recall, the Tajik government in late March 2020 revised minimum capital requirements for insurance companies upwards to 2 million somonis and 50 million somonis, depending on the forms of property.
The insurance and reinsurance companies were given a year to comply with the revised minimum capital requirements, until April 1, 2021.
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. With reinsurance, the company passes on ("cedes") some part of its own insurance liabilities to the other insurance company. The company that purchases the reinsurance policy is called a "ceding company" or "cedent" or "cedant" under most arrangements. The company issuing the reinsurance policy is referred to as the "reinsurer". In the classic case, reinsurance allows insurance companies to remain solvent after major claims events, such as major disasters like hurricanes and wildfires
The previous minimum capital requirements for insurance companies were 5 million somonis for state-run insurance companies and 500,000 somonis for private insurers.
The new minimum capital requirements for the insurance companies are: not less than 10 million somonis for state-run insurance companies; 2 million somonis for private insurance companies dealing only with “general insurance category; not less than 10 million somonis for private insurance companies dealing with compulsory insurance along with other categories of insurance; not less than 5 million somonis for private insurance companies dealing only with “general insurance” category; and not less than 50 million somonis for state-run and private reinsurance companies.
The authorities justified their decision to revise the minimum capital requirements for insurance companies 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.”
Among the prevailing classes in the market it is worth noting property insurance, personal insurance, liability insurance and life insurance.
