Authorized Capital of Insurance Organizations as a Factor of Financial Stability

This study examines authorized capital as a component of the financial stability and solvency architecture of insurance organizations in Uzbekistan. The analysis combines legal review, comparative analysis, descriptive statistics, dynamic-series analysis and an analytical comparison with international prudential principles. The regulatory schedule established by Presidential Resolution No. PQ-108 differentiates minimum authorized capital by insurance activity and provides staged increases for 2025, 2027 and 2029. Official data show that aggregate authorized capital increased from UZS 3.031 trillion in the first quarter of 2025 to UZS 3.998 trillion in the first quarter of 2026, an increase of UZS 0.967 trillion or 31.9%. During the same period, aggregate insurer investments rose from UZS 7.3 trillion to UZS 10.3 trillion, or 41.1%. The study finds that higher statutory capital can improve loss-absorption capacity and support policyholder protection, but nominal capital is not a sufficient stand-alone measure of resilience. Capital quality, technical reserves, reinsurance, liquidity, asset quality, investment concentration, profitability and the underlying risk profile should be assessed jointly. The article proposes a two-layer approach that combines transparent statutory minimum capital with progressively more risk-sensitive solvency assessment and forward-looking capital planning.