New Reinsurance Pool Formed by Uzbekistan, Kazakhstan, Azerbaijan and Georgia
A New Reinsurance Pool “Turan” Created by Insurance Companies from Central Asia and the Caucasus
A new reinsurance pool called “Turan” has been established by insurance companies from Uzbekistan, Kazakhstan, Azerbaijan, and Georgia, as reported by the business publication Forbes.kz. The pool will be managed by the American insurance broker Marsh & McLennan Companies.
The authorized capital of the pool will be $6 million, with contributions from Halyk (Kazakhstan) and AzRe Reinsurance (Azerbaijan) at $2 million each, Apex Insurance (Uzbekistan) at $1.5 million, and Aldagi (Georgia) at $0.5 million.
The reinsurance pool will focus on reinsuring risks in areas such as construction, energy, finance, fleet, aviation, property, and civil liability. Umid Khalikov, a member of the supervisory board of Apex Insurance, explained that insurance premiums and losses will be paid in the policy currency, and settlements between non-residents will be made in American dollars.
One of the key features of the pool is a priority line of up to $5 million and a quota line of up to $40 million, with plans to increase it to $100 million by the end of 2024.
According to Khalikov, the establishment of Turan aims to provide additional reinsurance capacity for players from the Commonwealth of Independent States (CIS) in response to a decrease in Russian volumes. Kaysar Abdir, the head of Halyk, added that the geopolitical situation was the driving force behind the creation of the association, even though the idea of the institution had been in the works for the past two years.
