The National Agency for Prospective Projects (NAPP) of Uzbekistan has updated the internal control rules for insurance organizations, strengthening the requirements for corporate oversight and risk assessment.
Details
According to the official NAPP website, the regulator has revised its approaches to the internal control of insurance companies. The updated document focuses on strengthening corporate governance.
Insurers will have to restructure their internal processes to comply with the new monitoring and reporting standards. Primarily, this concerns mechanisms for identifying and minimizing financial and operational risks. The agency’s official release has not yet provided specific timeframes for the transition period to adapt companies’ IT systems and regulations.
Country and market
For Uzbekistan, this is part of a large-scale campaign to modernize the financial sector. NAPP is consistently expanding its supervisory perimeter, acting as a mega-regulator. Previously, the agency took control of the circulation of digital assets and introduced a special tax regime for foreign crypto investors, and is now systematically updating the rules of the game in traditional insurance.
Why it matters
The insurance sector traditionally lags behind the banking sector in terms of digitalization. The implementation of strict internal control standards requires companies to automate compliance and auditing.
The tightening of regulatory requirements will force conservative players to invest in IT infrastructure, which will ultimately simplify the integration of insurance products into banking applications.
The updating of the rules directly affects the economics of partnerships. Banks and fintech services selling policies under the bancassurance model will have to take into account the new compliance procedures of their insurance partners.
What’s next
The market expects an adaptation period. Large players with developed technological platforms will be able to implement the new control standards more quickly. For small companies, the increase in compliance costs may become a reason to review business models or look for technological partners among local insurtech startups.