DIVERSIFYING THE INSURANCE MARKET OF UZBEKISTAN: ECONOMIC OPPORTUNITIES OF CONVENTIONAL INSURANCE AND THE TAKAFUL SYSTEM

Abstract

The article examines whether takaful (Islamic insurance) can serve as an instrument for diversifying Uzbekistan’s insurance market alongside conventional insurance. Using comparative institutional analysis of Malaysia, Saudi Arabia, Indonesia and Central Asian neighbours, structural analysis of the national market for 2021–2025, content analysis of legal acts and scenario estimates, the study finds that market growth is concentrated in short-term and credit-linked lines: life insurance accounts for 4.4% of premiums, while credit insurance generates about 27%. Takaful exists only as a pilot line launched in 2021; the 2026 Islamic banking law does not cover insurance, and insurers’ portfolios rely on conventional bank deposits. Under realistic scenarios takaful could reach 2–5% of premiums, or UZS 0.35–0.83 trillion at the projected 2026 market size. Recommendations cover a takaful chapter in insurance law, Sharia-compliant asset classes, window-based entry and tax neutrality