Insurance has a special importance in the socio-economic development of every country. For this reason, the development of the insurance market is very important for our country. After the restoration of independence, a lot of work has been done by the state to develop the insurance market. However, a number of factors have hindered the development of the national insurance market for many years. The existence of these factors slows down the process of sufficient development of the insurance market. The purpose of the research is to analyze the causes of these problems and make proposals for their elimination. Also, one of the main goals of the research is to develop recommendations for increasing efficiency in state regulation of the insurance market. The modern problems of the insurance market and the factors creating them were analyzed in the article. The role of the state in solving them was also discussed. Proposals were made regarding the improvement of the mechanism of state regulation of the insurance market. As a result of the conducted research, the main directions were determined for the purpose of solving the existing problems and developing the insurance market.