DWIC 2025: Unlocking growth in Central Asia’s complex, emerging markets

Central Asia is increasingly on the radar of global reinsurers, with foreign investment driving rapid expansion across the region’s insurance markets, speakers told Dubai World Insurance Congress (DWIC).

However, a DWIC 2025 panel agreed that the market faces significant obstacles, including fragmentation, technical shortfalls and limited capacity.

Panellists noted that insurance penetration remains low, particularly in Uzbekistan, but the growth curve is steep.

Oybek Nosirovich Khalilov, CEO of Mosaic Insurance Group and chair of Uzbekistan’s insurance association, explained: “We see exponential growth in our market,” suggesting Uzbekistan was growing to catch up with neighbouring Kazakhstan’s market penetration.

Supporting this trajectory is a wave of foreign investment, particularly in renewables and mining, the panel suggested.

Anvar Umarov, director at Uzbekinvest, pointed to 69% market growth over the past eight years and five- to six-fold increases among leading insurers. However, he cautioned that this rapid expansion risks outpacing local capabilities without targeted reform.

Fragmentation, data and infrastructure gaps

The panel was candid about the structural weaknesses holding the market back. Chief among which is a lack of cohesion between local insurers.

Khalilov warned that a tendency toward undercutting and poaching between companies was eroding trust and reducing pricing discipline.

On a technical level, Central Asia still lacks many of the risk tools taken for granted in more mature markets. There are no regional catastrophe models, no formal risk pools, and only limited capabilities for modelling or disaster preparedness, the panel stressed.

“We are operating in a part of the world that we all know is highly exposed to natural hazards … and yet we lack the infrastructure, data models and financial tools to price and manage these risks effectively,” said Khalilov.

Umarov noted that Uzbekinvest has been building modelling capabilities internally and working with international partners to train clients, but acknowledged the process is still underway.

From a broker’s standpoint, the quality of underwriting submissions remains inconsistent.

Maria Kuznetsova, senior executive officer at Emergent Risk Solutions, said basic gaps in documentation, engineering reports and loss histories make it difficult to place risks internationally—especially when reports from recognised surveyors are either unavailable or unaffordable.

Dubai is a gateway

Given these challenges, Central Asian insurance firms are increasingly looking to Dubai and the DIFC as a bridge to international reinsurance markets.

Umarov said Dubai offered more than geographic convenience. “When I think about what makes a strong reinsurance hub, I’m looking for predictability, ability, regulatory clarity, a transparent tax environment, access to qualified professionals and most importantly, a clear gateway to global markets,” he said, adding that both Abu Dhabi and Dubai fit the bill.

The panel added that as Gulf-based investors increase their exposure to Central Asian infrastructure, such as to renewable energy projects, reinsurers are becoming more familiar with the region’s risks, regulations and underwriting culture – helping smooth the path for more diverse risks to be placed internationally.

Bridging a maturity gap: a shared responsibility

Despite a dose of optimism, the panel was clear that closing the re/insurance protection gap, even for big commercial insurance business, will require work from both sides.

As such, regional insurers must improve their own standards, and international underwriters should also calibrate their expectations.

Kuznetsova described the painstaking process of alignment. “We are trying to do what we call calibration process – understanding which exact concerns underwriters have about the risks,” she said. “It’s not a quick business.”

Neeraj Yadvendu, head of Middle East at Berkshire Hathaway Specialty Insurance, agreed. “Risk selection is risk selection regardless of where you do business … what changes is the quality of information that is provided,” he said. “You want a ‘triple-A’ rated solid insurer… but that’s a challenge.”

He emphasised that long-term engagement – not short-term underwriting – will build real partnerships: “I will not kill myself investing there, but I will be prepared to make some concessions,” he said.

The panel closed with cautious optimism. Khalilov stressed the need for improved training and internal industry coordination in Uzbekistan, as well as better support from the international market.

For brokers, like Kuznetsova, the opportunity lies in moving beyond traditional energy and infrastructure into specialty lines like cyber, professional indemnity and financial risk.

She noted that some regulators are even considering mandatory cyber coverage for companies holding personal data, and her firm has developed bilingual cyber wordings for this evolving market.

Ultimately, the panel agreed that Central Asia is no longer on the periphery of the re/insurance world. The opportunities are real and considerable—but so are the responsibilities.

With greater transparency, training and commitment from both regional players and international reinsurers, the sector could soon become a serious force.

Khalilov added: “We are attractive in Central Asia, but I want to be attractive as Dubai and Singapore … and I think with more collaboration and understanding between each other, we will have a better result.”