BAKU, Azerbaijan, June 24
By Yusif Aghayev – Trend:
Fitch Ratings international credit rating agency has published a report evaluating the insurance segment of the Azerbaijani economy, Trend reports referring to Fitch Ratings.
“The regulatory and supervisory regime in the Azerbaijani insurance sector is developing,” the report said. “It is necessary to strengthen the work to improve transparency and effectiveness of enforcement.”
“Technical sophistication of insurance market, diversity and breadth technical skills are modest and still developing,” Fitch Ratings added.
“Retail products are mainly simple, whereas commercial coverage is designed with the help of foreign brokers or reinsurers,” the report said. “The penetration of insurance in the country’s economy is not big. Insurance penetration rate reaches less than 1 percent.”
“Market concentration is high, with the largest two insurance groups collecting over a half of primary premiums in the market,” the report said. “The number of market participants has been largely stable.”
Fitch Ratings views the quality of Azerbaijan’s insurance regulatory regime, both in prudential and conduct aspects, as improving.
In general, the Azerbaijani insurance companies collected insurance premiums in the amount of 681.2 million manat ($400.7 million) in 2019, which is 46.8 million manat ($27.5 million) or 6.4 percent less than in 2018, and paid insurance claims in the amount of 301.5 million manat ($177.3 million), which is 61.2 million manat ($36 million) or 25.4 percent more than in 2018.
Today, 21 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on June 24)
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