Proceedings of the 13th International Conference on New Ideas in Management, Economics and Accounting
Year: 2024
DOI:
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ESG Principles in The Insurance Business of Uzbekistan, Insurance of Environmental Risks
Azimov Rustam Sadykovich, Mirsadikov Miradil Abdullaevich
ABSTRACT:
Sustainable insurance is aimed at reducing risks, improving business efficiency, developing innovative solutions and promoting economic, environmental and social sustainability. Protecting people’s lives and well-being is a key component of the concept of sustainable development. In the absence of any formal protection mechanism and in risky situations, people with low incomes tend to rely on informal survival mechanisms. Therefore, without an effective insurance mechanism with affordable insurance rates, sustainable development is impossible to achieve.
Sustainable success of insurance organizations can be achieved through effective management, through the organization’s awareness of its environment, through learning, and through the proper application of innovation and improvement. To maintain it, the organization’s environment must be monitored regularly, its performance must be examined and analyzed, and the achievement of its results must be evaluated in accordance with its mission, vision, policies, strategies and objectives.
The main problems of the domestic insurance market that hinder sustainable development include:
– low level of insurance culture among representatives of private and small businesses, as well as among the population. Insurance culture in this case is defined as a conscious perception of financial expenditures on insurance as reasonable and necessary;
– low level of insurance coverage (insufficient retail sales of voluntary types); underdevelopment of compulsory types of insurance; poor capitalization of the majority of insurance companies; insufficient level of life insurance development;
– limited range of actually offered insurance services, which does not reflect current and prospective needs of both legal entities and individuals;
– absence of a large, well-capitalized national reinsurance company;
– absence of mutual insurance;
– insufficient level of state regulation and supervision of insurance activities;
– practical absence of self-regulatory organizations of the insurance market of Uzbekistan.
Sustainable development of insurance, including environmental insurance, is compounded by the world’s largest environmental problem associated with the Aral Sea’s unprecedented drying up and the related environmental and humanitarian disaster in the Aral Sea area, one of the main reasons for the emergence of which was the policy pursued in the 60-80s of the last century and aimed at increasing the area under cotton. In connection with the above-mentioned, the issues of environmental insurance in relation to the mentality of the local population are particularly relevant for Uzbekistan.
keywords: environmental insurance, insurance, sustainable development