Digital transformation of the Uzbekistan insurance market: Determinants, barriers, and strategic development trajectories

Rustam Azimov () and Mirsadikov Abdullaevich ()
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Rustam Azimov: Uzbekinvest Export-Import Insurance Company
Mirsadikov Abdullaevich: Uzbekinvest Export-Import Insurance Company

No 15817142, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: This study examines the determinants, barriers, and strategic development trajectories of digital transformation in the insurance market of Uzbekistan within the context of global InsurTech trends. The research aims to bridge the gap between the rapid quantitative growth of the sector and its insufficient qualitative development driven by digital technologies. The theoretical framework is grounded in the works of R.S. Azimov, integrating concepts of institutional hysteresis and sufficient human capital with classical theories of innovation diffusion and human capital.The empirical analysis is based on panel data from 16 leading insurance companies in Uzbekistan over the period 2020?2024. A fixed-effects econometric model is employed to test key hypotheses regarding the impact of digital investments, IT infrastructure, Big Data implementation, and human capital deficits on digitalization and financial performance. The findings reveal that while digital investments and technological adoption positively influence performance, their effectiveness is significantly constrained by shortages in qualified personnel and outdated infrastructure.A key contribution of the study is the empirical validation of Azimov?s theoretical propositions. In particular, the results confirm that investments in digital technologies generate positive financial returns only after a critical threshold of human capital is achieved. Otherwise, such investments may lead to inefficiencies. The research also identifies institutional and market-related barriers, including regulatory uncertainty and low trust in digital channels.The paper proposes three strategic development trajectories? inerti al, catch-up, and breakthrough?emphasizing the need for coordinated efforts between the state and private sector. Practical recommendations are provided to support policy formulation and strategic planning aimed at fostering sustainable digital transformation in Uzbekistan?s insurance market.

Keywords: Digital transformation; Insurance market; InsurTech; Uzbekistan; R.S. Azimov; Econometric modeling; Panel data (search for similar items in EconPapers)
JEL-codes: C23 G22 O33 (search for similar items in EconPapers)
Pages: 10 pages
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Published in Proceedings of the Proceedings of the International Conference on Economics, Finance & Business, Berlin, Nov -0001, pages 1-10

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