Improving The Efficiency of Investment Activities of Insurance Companies As A Guarantee of Their Financial Stability
Abstract
Insurance companies play a vital role in global economic development by mobilizing financial resources and investing in various sectors. Their financial stability significantly impacts the broader investment environment. In Uzbekistan, enhancing the efficiency of insurance companies’ investment activities has become crucial to strengthening their contribution to national economic growth and financial resilience. Despite strategic intentions, there is limited methodological guidance and systemic regulatory support for optimizing investment activities and ensuring financial stability in the insurance sector. This study aims to improve the methodology for assessing the efficiency of insurance companies' investment activities and propose scientifically grounded and practical recommendations to enhance their financial stability. The research reveals that Uzbekistan's insurance companies increasingly rely on bank deposits and securities, with a notable diversification of investment directions. However, imbalances in insurance portfolios and underutilized financial reserves persist. The volume of investments in real estate and loans grew significantly in recent years, while reliance on authorized capital investments declined. The paper integrates theoretical insights, actuarial calculations, and empirical data to build a classification of internal and external factors influencing investment potential. It also introduces a framework for the effective monitoring and risk assessment of insurance companies. The findings underscore the need for regulatory reform, development of national investment strategies, and the introduction of international rating standards to elevate the financial sustainability of insurers. Strengthening investment infrastructure and promoting transparent governance will ultimately ensure a stable insurance sector capable of driving economic modernization in Uzbekistan.
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