Market participant: 2011 to be year of recovery for insurance market in Azerbaijan

Business Materials 6 January 2011 20:42 (UTC +04:00)

Azerbaijan, Baku, Jan. 6 /Trend, U.Ismayilova/

2011 will be the year of recovery for the insurance market in Azerbaijan after reduction in insurance premiums in 2008 and 2009, chairman of board of Paşa Sigorta Insurance Company Nofel Rzayev said. The amount of insurance premiums in 2008 totaled 179.26 million manat, in 2009 - 163.31 million manat. Last year, decline was also recorded in the market, and in January-November, the amount of insurance premiums fell by 8.17 percent compared to the same period of the previous year.  
"However, the radical growth in the insurance market of the country should be expected in 2012, about five percent," said Rzayev.

According to him, given that a new line of business - life insurance has appeared on the insurance market, and the introduction of compulsory insurance from loss of ability in production, it is possible to predict the growth of the market for both Life, and Non-Life risks.

According to the law on the "insurance activity" of Azerbaijan, from March 2011 the country should divide Life and Non-Life-companies. Azerbaijan has two Life-companies - Atesgah Heyat and Qala Heyat, and the third - Pasa Heyat Sigorta is at the stage of obtaining a license for insurance activity.

A total of 27 insurance and one re-insurance companies operate in Azerbaijan.

Official rate on Jan. 6 is 0.7977 AZN/USD.