Volume of insurance premiums in Azerbaijan in relation to country’s GDP revealed
BAKU, Azerbaijan, Feb. 17
By Yusif Aghayev- Trend:
The volume of insurance premiums collected in Azerbaijan in relation to the country’s GDP hasn’t been able to break through the strategic barrier of one percent, Trend reports Feb. 17 with reference to the published report of the country’s Central Bank.
In general, Azerbaijan’s insurance companies collected premiums worth 681.1 million manat ($400.6 million) in 2019, which is 46.7 million manat ($27.5 million), or 6.4 percent less than in 2018.
The volume of Azerbaijan’s gross domestic product in 2019 compared with 2018 increased by 2.2 percent and amounted to 81.6 billion manat ($48 billion). Thus, the volume of collected insurance premiums in Azerbaijan in relation to the country’s GDP amounted to 0.8 percent. This is while in the developed countries of Europe and the world, this indicator varies within 5-16 percent.
The average indicator of the volume of collected insurance premiums in Azerbaijan per capita is about 68 manat or about $40 at the current CBA exchange rate.
At the end of 2018, this figure was slightly higher and amounted to 73 manat or about $43. For comparison, this indicator in the US is $2,000, in Japan - $4,500, in Switzerland - $7,500.
It was earlier reported that the decrease in insurance premiums was mainly related to changes in tax legislation, as a result of which companies operating in life insurance segment observed a decrease of 86.3 million manat ($50.7 million) or 28 percent of the premiums compared to indicators of 2018.
As for non-life insurance segment, premiums in this sector increased slightly, while premiums in the compulsory insurance segment increased significantly - by 17 percent compared to figures of 2018.
The main problems related to insufficient growth in the insurance sector are the lack of awareness among the Azerbaijani population in this area.
This year, a number of events are planned related to the raising public awareness and promotion of insurance in Azerbaijan.
There are 22 insurance companies and one reinsurance company in Azerbaijan.
($1= 1.7 manat on Feb. 17)