LIFE INSURANCE AS A SOURCE OF LONG-TERM INVESTMENT RESOURCES IN UZBEKISTAN: DEVELOPMENT CONSTRAINTS AND POLICY INSTRUMENTS
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This article examines the role of life insurance as a source of long-term investment resources for the economy of Uzbekistan and identifies the constraints on its development and the policy instruments capable of removing them. Based on official data of the National Agency for Prospective Projects, the study shows that, despite more than doubling in 2025, life insurance premiums amounted to only UZS 586.5 billion, or 4.4% of total premiums, while life insurance penetration was about 0.03% of GDP. Constraints are classified into demand-side, supply-side, institutional and macroeconomic groups, with particular emphasis on competition from bank deposits and on the shortage of long-term financial instruments. The effect of the existing personal income tax incentive on the effective return of a policyholder is quantified, and a model of the accumulation of life insurance reserves is proposed; under the scenarios considered, reserves formed from new premiums could reach UZS 4.3–9.3 trillion by 2030. A set of tax, product, investment, protection and distribution instruments for developing long-term life insurance is substantiated.
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