Priority directions of life insurance development in uzbekistan

PRIORITY DIRECTIONS OF LIFE INSURANCE DEVELOPMENT IN UZBEKISTAN
Abstract: In this article, the development of life insurance in Uzbekistan, the further reform of the national insurance market and ensuring its rapid development, the introduction of new types of life insurance services in high demand, the insurance of consumers At a time when increasing confidence in the market is the most pressing issue of the day, the negative impact of several factors on the development of life insurance requires an innovative mechanism in the field of life insurance, taking into account the real reality in our country and its characteristics, as well as advanced foreign experience. It talks about the ways of carrying out the relevant works aimed at development and implementation.
Key words: insurance companies, life insurance programs, social protection of the population, gross domestic product, life insurance, bonuses, insurance of interests.


Introduction. Further reform of the national insurance market and ensuring its rapid development, introduction of new types of insurance services in high demand, increasing consumer confidence in the insurance market is one of the most urgent issues of the day. At the moment, the negative impact of several factors on the development of life insurance requires the implementation of appropriate work aimed at the development and implementation of an innovative mechanism in the field of life insurance, taking into account the real reality in our country and its characteristics, as well as advanced foreign experience.As a result, life insurance should serve to ensure its long-term progressive development by further increasing the attraction of each potential policyholder to this type of activity.
The question of what is life insurance can actually be answered as follows: "life insurance" is one of the fields of insurance, life insurance (life, health, work capacity and money of individuals insurance of interests related to its provision), where the minimum term of insurance under the contract is one year and includes the increased percentage of the insurance money specified in the insurance contract cover the beneficiary's one-time or periodic payments (annuitiesThe insurance company pays the insurance compensation when: the insured person reaches a certain age, as well as in case of death in an accident or in case of other circumstances provided for in the insurance contract. Usually, in case of death, the payment is received by the heirs of the insured person or the beneficiary specified in the insurance contract. In addition, the bank can take, if the car or house is pledged (borrower's insurance).
An example and answer to the question of how life insurance actually works can be given as follows: the client signs a life insurance contract (classic type) and pays the insurance premiums monthly, quarterly or annually. If an insured event occurs during the contract period, for example, survival or death, the company pays compensation.As a rule, the amount of compensation is several times higher than the amount of contributions actually paid. For example, a contract is concluded with an insurance period of 13 months, with a monthly payment of 1,000,000 soums: if the insured person survives: 13,000,000 soums, as well as a bonus of 4% to 7%, if in case of fatal consequences: his heirs or beneficiary will receive 13,000,000 soums.
There are other types of life insurance, such as saving for special milestones in life, such as marriage, the birth of a child, or saving until many children reach adulthood. There are also high yield life insurance products, where apart from effective savings with a huge bonus, you can also get monthly annuities (monthly payments) starting from the 13th month.The annuity can be 100% of the monthly payment and the payments are transferred to your plastic card. It should be remembered that our state has introduced tax incentives to encourage the life insurance industry, which, in addition to the required amount and duration of insurance protection, allows additional savings of 12% in income tax. There are also bonuses from the company ranging from 4% to 7% depending on the selected program. (According to Article 378, Clause 15 of the Tax Code of the Republic of Uzbekistan, exemptions on personal income tax: "Salary and other income of individuals allocated for long-term life insurance are not subject to tax." Also, 369 - article: (Based on the item of income not included in general income) 4) sums received by citizens in the form of insurance compensation; (ie the insurance claim is not fully included in income and not subject to income tax)). However, the current state of the life insurance system of Uzbekistan is largely due to the fact that insurance is not required as a tool of state economic and social policy. The tax regime, which corresponds to the nature of insurance and encourages long-term life insurance of enterprises and citizens, has not been formed at a high level.The development of the domestic market of life insurance is mainly hindered by citizens' lack of confidence in financial institutions, in particular, in insurance companies. In order to create conditions for the development of long-term life insurance, Uzbekistan should reform the social, pension and medical sectors.
However, despite such a rapid increase in insurance premiums, it should not be forgotten that almost 12-15 percent of Uzbeks live below the poverty line, and the income of more than 4-5 million citizens is below the subsistence minimum. Only the broad development of life insurance is really allows to direct the state social protection to help the segments of the population in need of social protection, the wealthy segments of the population take care of themselves by purchasing insurance services. insurance (at the expense of both the employer and employees) should be widely developed.
Later, according to the Decision of the President of the Republic of Uzbekistan on additional measures to digitize the insurance market and develop the life insurance sector, from January 1, 2022 to January 1, 2025 until 50% reduction of the tax rate determined for the profit tax of insurance organizations operating in the field of life insurance for this part of their activity was ensured. In addition, from January 1, 2022 to January 1, 2024, on the basis of the insurance contracts concluded by the employer on the types of accident insurance and medical insurance for its employees, Uzbekistan It was also ensured that funds allocated to legal entities with a license to carry out insurance activities in the Republic are not recognized (not counted) as the total income of individuals.Taking into account the above-mentioned points, on the basis of national and foreign experiences, to assess the development trends and prospects of the life insurance services market of our country, to determine the factors affecting the development of the life insurance industry and their level of influence, life insurance Undoubtedly, finding fundamental problems related to the development of agriculture and developing proposals and recommendations aimed at solving them is the most urgent issue on today's agenda. In general, the level of growth of the market of life insurance services in our country can be seen in recent years, however, although life insurance premiums have increased by 2 times compared to last year, the overall result is that the share of GDP is 0.1% of the available opportunities. indicates that it is still underutilized.
So, there are a number of problems affecting the development of life insurance in our country, which, in my opinion, can be divided into two groups: macro and micro level problems. The following indicators related to the stability of the macroeconomic situation in the country can be included among the macro-level problems:

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  high inflation rate;
  
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  national currency is not always stable;
  
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  lack of opportunities for reliable placement of insurance reserves and attractive investment instruments for life insurance companies, underdevelopment of the stock market.In order for life insurance to fulfill the accumulation and savings functions, it is necessary to have a developed investment market, but this situation cannot be considered sufficient in our country;
  
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  concern of the population about the unstable economic and political situation. Life insurance, first of all, is an industry that works effectively only in stable conditions;
  
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  low real income of the population or low solvency. The low income of the majority of the population is an obstacle to the widespread introduction of life insurance. The main part of the population's income is spent on primary needs, and little money remains for savings.
  
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  Inadequate coverage of tax benefits provided for life insurance. Tax credits apply only to the income of individuals, which expands the economy in the form of wages directed to life insurance, and its impact decreases when the tax rate decreases. I think it is appropriate to introduce these benefits to all incomes of individuals that are subject to income tax. For example, the income of individuals under the lease agreement is also taxed at 12 percent. Usually, in order to avoid taxes, individuals understate their income or do not sign a rental agreement at all. This will expand the secret economy.
  

The following can be included in the category of micro-level problems affecting the development of life insurance, the solution of which is fully or partially the responsibility of insurers:

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  low life insurance culture of the population. It is not a secret to any of us that nowadays the concept of life insurance, consciousness, insurance culture, and concepts about insurance are not formed to such an extent among the population. This is the biggest problem in the insurance sector. The main reason for this is the lack of qualified life insurance agents and the lack of sources that explain the nature of life insurance. One of the best ways to create an insurance culture among the population is to train qualified, professional insurance agents. In this way, it is necessary to inform them about the advantages of life insurance and to develop advertisements.
  

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  low confidence of the population in relation to life insurance or insurance companies. Since life insurance is based on the investment of insurance premiums, serious requirements are placed on the stability and financial condition of insurance companies. In the event of general instability and a possible financial crisis, insurers cannot guarantee a long-term perspective. In my opinion, under such conditions, the introduction of the system of guaranteeing payments for life insurance in Uzbekistan will further strengthen the protection of the property interests of the insured (beneficiaries), and ensure the confidence of the population in life insurance. Therefore, I propose to establish a life insurance payment guarantee fund in Uzbekistan, and I believe that this, in turn, will create conditions for the stable development of the insurance market;
  
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  low level of inclination of the population to accumulate their savings in insurance. Due to the low trust of the population in financial institutions, they convert their money into US dollars and save it at home as the most appropriate way. Because the value of this currency increases every year, therefore they do not invest it in the local economy;
  
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  lack of life insurance companies in the national insurance market. In addition, all life insurance companies are organized in the organizational and legal form of a limited liability company under the foundation of general insurance companies. Therefore, the life insurance network is under the influence of the general insurance network. For this reason, I propose to increase the number of life insurance companies and organize them in the form of joint-stock companies.
  
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  lack of life insurance companies in the national insurance market. In addition, all life insurance companies are organized in the organizational and legal form of a limited liability company under the foundation of general insurance companies. Therefore, the life insurance network is under the influence of the general insurance network. For this reason, I propose to increase the number of life insurance companies and organize them in the form of joint-stock companies.