This paper examines the prospects for implementing the Underwriting Strictness Index (USI) as an innovative tool for strengthening risk assessment, improving portfolio quality, and enhancing financial stability in Uzbekistan’s insurance market. The study explores how the USI integrates strategic alignment, documentation quality, counterparty credit ratings, financial stability indicators, and compliance with international standards such as Solvency II and IAIS principles. A comprehensive operational algorithm is proposed to guide insurers in applying the index during the underwriting process. The findings indicate that the USI can significantly reduce adverse selection, increase underwriting discipline, and enhance transparency in decision-making. Moreover, the adoption of the index supports Uzbekistan’s integration into global insurance markets by improving credibility, attracting international reinsurers, and fostering a more competitive and innovative insurance environment.