Green Insurance and ESG Practices in Transition Economies: The Case of Uzbekistan

Abstract

The aim of the study is to empirically assess the impact of implementing ESG princi-ples and green insurance products on the financial sustainability of insurance organizations in transition economies, using Uzbekistan as a case study. The methodology includes an econometric analysis of panel data from 14 insurance companies in Uzbekistan for the period 2018–2024, employing the difference-in-differences (DiD) model and fixed effects regression analysis. The results demonstrate that the implementation of ESG practices leads to a decrease in the loss ratio by 8.7 percentage points and an increase in premiums for environmental types of insurance by 23.4% following the institutional reforms of 2021–2023. The scientific novelty lies in the first quantitative assessment of green insurance effects in the institutional environment of a post-Soviet transition economy. The practical significance lies in substantiating recommendations for the regulator on stimulating the ESG transformation of the insurance secto.