PROSPECTS FOR IMPROVING INVESTMENT ACTIVITY IN INSURANCE COMPANIES

Аннотация

This scientific article studies the issues of improving the investment activities of insurance organizations. The role of investment activities in ensuring the financial stability of insurance companies and expanding their income base is emphasized. The work analyzes the current situation in the insurance market of Uzbekistan and compares it with foreign experience. Also, problems in the structure of investments, performance indicators and investment policy of insurance organizations are identified, and proposals and recommendations are developed to eliminate them. The results of the study suggest approaches aimed at diversifying the investment portfolio of insurance companies, managing risks and optimizing the investment strategy. Keywords: Insurance organizations, investment activities, financial stability, investment portfolio, risk management, profitability, diversification, investment policy, insurance market, economic efficiency. Introduction. In a market economy, insurance organizations are recognized as one of the most important institutions that contribute not only to reducing the financial risks of the population and business entities, but also to economic stability through investment activities. The correct allocation of collected insurance premiums by insurance organizations and their transformation into effective investments is of great importance in increasing the level of financial stability and competitiveness. Investment activities serve as a means of expanding the income base of insurance companies, maintaining and increasing insurance reserves, as well as https://scientific-jl.com/luch/ 2 0 5 Часть-46_ Том-5_ июнь-2025 making capital investments in various sectors of the economy. However, the insufficient effectiveness of existing investment strategies, the underdevelopment of financial markets, and the imperfection of the regulatory and legal framework are among the pressing problems in this area. The main goal of this article is to conduct an in-depth analysis of the investment activities of insurance organizations, identify existing problems and develop proposals and recommendations to eliminate them. This will allow the investment potential of the insurance sector to be fully realized and their role in the national economy to be strengthened. In world practice, the financial stability of insurance companies, which are an important segment of the financial market, is determined primarily by their investment activity, solvency and the amount of insurance reserves. According to data provided by major international rating companies, there is a high correlation between the level of well-being of the population (GDP per capita) and the share of insurance premiums in GDP, which indicates the financial stability of the insurance market of leading developed countries. In recent years, as a result of the implementation of reforms in the development of the insurance market in our country, the share of insurance services in GDP has been increasing. Increasing the financial stability of insurance companies is not only important for ensuring timely fulfillment of obligations to creditors, but also for increasing additional investment opportunities. As of 2024, a total of 33 insurance companies were operating in Uzbekistan, of which 28 were in the general insurance sector and the remaining 5 were in the life insurance sector. If we compare the authorized capital of insurance companies, it amounted to 2.964 trillion soums as of 2024, which is an increase of 28.9% compared to the same period last year (Table 1). https://scientific-jl.com/luch/ 2 0 6 Часть-46_ Том-5_ июнь-2025 Table 1 – Structure of the Insurance Market in Uzbekistan1 No. Structure of the Insurance 2023 2024 Change Market (+,-) 1 Number of insurance 38 / 7 33 / 5 -13.2% / organizations, including life -28.6% insurance 2 Total charter capital of 2,299 2,964 +28.9% insurance organizations (mln. UZS) 3 Number of insurance brokers 8 11 +37.5% 4 Number of actuaries 5 5 0% 5 Number of insurance agents, 4,736 / 4,804 / + 1 .4% / including legal entities 1,711 1,704 -0.4% 6 Number of insurance 26 25 -3.8% organizations that are members of the Guarantee Fund Also, when we compare the indicators of the insurance market in 2023 and 2024, several important trends are observed. First of all, the number of insurance companies decreased from 38 to 33, which is a decrease of 13.2%. In particular, the number of companies engaged in life insurance decreased even more sharply - by 28.6%. However, despite this decrease, the total authorized capital of companies increased by 28.9%, which means that they are becoming financially stronger. The number of insurance brokers increased from 8 to 11, which is an increase of 37.5%. This indicates an increase in demand for intermediary services in the market. The number of insurance agents also increased slightly, showing an increase of 1.4%, 1 Prepared by the author based on information from the official website of