Uzbekistan, Kazakhstan, Azerbaijan and Georgia create a reinsurance pool

Insurance companies from Uzbekistan, Kazakhstan, Azerbaijan and Georgia have created a reinsurance pool, the business publication Forbes.kz reports.

On December 23 in Tashkent, representatives of Halyk (Kazakhstan), Apex Insurance (Uzbekistan), AzRe Reinsurance (Azerbaijan) and Aldagi (Georgia) signed a memorandum on the establishment of the international reinsurance pool “Turan”. It will be managed by the American insurance broker Marsh & McLennan Companies.

The authorized capital of the pool will be $6 million: Halyk and AzRe Reinsurance will contribute $2 million each, Apex Insurance – $1.5 million, Aldagi – $0.5 million.

According to Umid Khalikov, a member of the supervisory board of Apex Insurance, insurance premiums and losses will be paid in the policy currency, and settlements between non-residents will be made in American dollars. Risks in areas such as construction, energy, finance, fleet, aviation, as well as areas related to property and civil liability will be reinsured.

Apex Insurance noted that the priority line is up to $5 million, the quota line is up to $40 million, with an increase to $100 million by the end of 2024.

Khalikov explained that Turan is intended to create additional reinsurance capacity for players from the CIS against the backdrop of a drop in Russian volumes. The head of Halyk, Kaysar Abdir, added that the reason for the creation of the association was the geopolitical situation, although the idea of the institution arose two years ago.