UZBEKISTAN: UNDP helps develop the insurance sector in Uzbekistan

UNDP, together with the Agency for the Insurance Market Development at the Uzbek Ministry of Finance, organized a seminar on June 24, 2021, during which the results of the diagnostics of the development of inclusive insurance and risk financing in Uzbekistan were presented, UzDaily.uz reports.

It was noted that due to the vulnerability of Uzbekistan to natural disasters, which can bring devastating consequences for the economy and the population, as well as the insufficient development of the insurance market and the lack of tools for inclusive insurance and risk financing, the government, enterprises, and households of the country suffer financial losses amounting to millions of USD.

UNDP established a special Risk Insurance and Financing Fund (Mechanism) to provide technical assistance to countries participating in the climate risk insurance program, including Uzbekistan, to develop inclusive insurance, financing sovereign risks, and integrate insurance into development planning and financing processes. At the first stage, the task was set to diagnose the insurance industry in the country, and the results of this study, as well as the recommendations of experts on the development of this sector, were discussed during the seminar.

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How to close Asia’s insurance protection gap

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Asia will drive the growth of the global insurance market in the years to come. Technological innovation along with solid financing and the right policies will be needed to make sure as many people as possible in the region get the insurance protection they need.

The demand for insurance in Asia in the coming decade will be shaped by rising household income levels of a rapidly expanding middle-class, policy measures to accelerate financial inclusion, and strengthening social protection and government insurance programs.

Governments are also increasingly making businesses, households, and individuals responsible for managing the adverse financial consequences of risks to assets, lives, incomes, and livelihoods.  One can, therefore, expect increased spending on buying protection and an expanding role for the insurance and capital markets to manage contingent liabilities better. The same holds for access to medical care, which will be spurring demand for health insurance.

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Governments and institutions bet big on CAT bonds

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There is something magical about the word bonds as it is closely linked with all facets of our life. But in the world of business, bonds are financial instruments that are used by governments and institutions to tide over funding difficulties in times of stress. And at no other time has it been more pronounced than at this juncture when businesses all over the world are reeling from the impact of the COVID-19 pandemic.

My interest in the topic was aroused when my old friend T.B.Nair, an independent analyst in the southern Indian city of Bengaluru, told me about how catastrophe bonds are gaining ground in the global marketplace. Nair told me that catastrophe bonds or CAT bonds are now becoming the instrument of choice for several countries to insure big transnational infrastructure projects from natural disasters. He even went on to suggest that CAT bonds would have been of great help for India to overcome the economic hardships arising from cyclones, floods etc.

Catastrophe bonds a win-win for governments & investors, says APEC

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The Asia-Pacific Economic Cooperation (APEC) continues to see the development of a regional catastrophe bond market as positive, highlighting at a recent workshop that cat bonds are a win-win relationship for governments and investors.

The workshop last week was convened by The World Bank Treasury alongside the APEC Business Advisory Council (ABAC) and Asia-Pacific Financial Forum, to educate on the use of catastrophe bonds as disaster risk transfer instruments for the APEC Regional Disaster Risk Financing and Insurance Solutions Working Group.

The goal is to expand the understanding of the role catastrophe bonds can play, as well as the important role insurance and reinsurance risk transfer products play in protecting the fiscal budgets of countries against impactful natural disasters.

Asian ILS market to benefit regional re/insurers: Fitch

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The development and growth of an insurance-linked securities (ILS) market in Asia can only be a benefit to local insurance and reinsurance carriers, as well as those operating regionally, as the capital markets capacity can help them expand their ability to underwrite and diversify capacity sources, rating agency Fitch explained recently.

Fitch noted in a recent report that Asian insurers and reinsurers are taking up catastrophe reinsurance and retrocession cover in excess of the minimum regulatory requirements to improve their risk mitigation capabilities.

In the future insurance-linked securities (ILS), such as catastrophe bonds and other securitised reinsurance or retro arrangements backed by capital market investors, are likely to assist in this regard.

World Economic Forum eyes risk sharing with catastrophe bonds: Davos 2020

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A World Economic Forum (WEF) initiative focused on responses to humanitarian risk is investigating areas where catastrophe bonds may prove valuable tools for risk sharing with private markets and investors, according to a United Nations representative.

The World Economic Forum (WEF) is an international organisation focused on public-private cooperation. Its annual meeting is approaching fast, held in Davos, Switzerland next week and as a result discussion of risk related issues, from disasters to humanitarian catastrophes, are front and centre once again.

In advance of the WEF’s Davos 2020 meeting, United Nations representative Mark Lowcock, the Undersecretary-General for Humanitarian Affairs and Emergency Relief Coordinator, at the UN Office for the Coordination of Humanitarian Affairs (UN OCHA), raised catastrophe bonds and risk transfer to private or capital market investors as a key route towards sharing (transferring) risks.

Страховые Ценные Бумаги и транзитные страны инициативы “Один пояс, один путь”

Перевод оригинальной статьи (in English) для 16-го конгресса SIRC. PDF версия здесь. 中文

По словам руководителя компании Phoenix CRetro Кирилла Саврасова, внедрение катастрофических облигаций на фоне инвестиций в проекты инициативы «Один пояс, Один путь» сможет нивелировать риск крупных бюджетных потерь и укрепить макроэкономическую стабильность региона стран бывшего СССР и западных Балкан путем организации инструментов быстрого доступа к финансовым ресурсам, необходимым для восстановления экономики пострадавших стран при наступлении значительных природных катастроф. 

Так совпало, что в день написания этой статьи, в Стамбуле произошло землетрясение магнитудой в 5.8 баллов, которое вызвало панику среди населения и повлекло за собой эвакуацию школ и государственных учреждений. Также в этом густонаселенном городе с количеством жителей более 15 млн. в одной из мечетей обрушился минарет.

На той же неделе, похожее событие в северо-восточном Пакистане стало причиной гибели 38 и ранения более чем 700 человек и серьезного ущерба критической инфраструктуре – дорогам и мостам.

一带一路国家与保险连接证券

阅读英文原件。 PDF版本在这里

Phoenix CRetro保险证券公司总裁吉里尔·萨符拉索夫Kirill Savrassov)指出,由于巨大的投资在整个欧亚区域注入一带一路倡议,引入巨灾债券可以帮助政府负债表免除风险,并加强宏观经济稳定性,同时也提供迅速的资金恢复途径。

我在写这篇文章的那一天,5.8级地震震动了伊斯坦布尔,造成了居民恐慌,学校和公务单位的撤离。其也在土耳其人口最大的城市里导致了清真寺的尖塔倒塌。

土耳其地震同一周之内,在东北巴基斯坦也发生了5.8级地震现象,造成38人死亡及700多人受伤。其也对这个巴基斯坦区域内的基础设施和路途造成了广泛的损害。

1999年,在土耳其西部发生的7.4级地震造成了17,000多人死亡。除了威胁伊斯坦布尔这个城市,最新的颤动强烈提醒我们,土耳其作为欧亚大陆的一部分一直面临着各种自然灾害和地震的威胁。

Belt and Road’s opportunities

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As investments into China’s Belt and Road Initiative (BRI) increase, Kirill Savrassov, CEO of Phoenix CRetro Reinsurance Company, told Baden-Baden Today that it represents big opportunities and challenges for the reinsurance industry, especially from a cat perspective.

He said the project, led by China and sometimes described as a multibillion dollar rebirth of the Silk Road, offers a key opportunity in exponential demand in additional cat capacity from local BRI transit markets.

However, he flagged potential challenges, saying: “I would note state ownership of critical infrastructure, low insurance penetration—below 2 or even 1.5 percent— with general underdevelopment of local markets in BRI transit countries, and existing and potential protectionism in re/insurance.”