A memorandum establishing an international reinsurance facility called Turan was recently signed in the capital of Uzbekistan, Tashkent, according to a ASN News report.
According to the announcement, the conference preceding the signing was attended by various heads of insurance companies, as well as representatives of regulators from Kazakhstan, Uzbekistan, Azerbaijan and Georgia.
Moreover, the members of the association were private insurance companies, one from each state: Halyk (Kazakhstan), Apex Insurance (Uzbekistan), AzRe Reinsurance (Azerbaijan) and Aldagi (Georgia).
According to ASN, the pool will be managed by insurance brokers, the American Marsh & McLennan Companies.
ASN’s report also noted, how the conference organizers explained that the goal of the facility is to improve the quality of risk portfolios against the backdrop of the growing needs of the emerging markets of Central Asia and the Caucasus.
Details of the project were revealed by Umid Khalikov, a member of the supervisory board of Apex Insurance.
According to Khalikov, the scope will be quotas or priority lines for “practically the entire product line,” covering all regions of the participating countries.
At the same time, both insurance premiums and losses will be paid in the policy currency, and payments between non-residents will be made in US dollars.
In addition, they also plan to reinsure risks that are related to such areas as construction, traditional and green”energy, financial lines, fleet, aviation, as well as risks associated with property and civil liability.
ASN’s report reveals that so far, the priority line is up to $5 million, while the quota line is up to $40 million, with an increase to $50 million by July 2024 and up to $100 million by December 2024 is expected.
