Market participant: Azerbaijan’s insurance market to grow by 25-30%

Business Materials 24 January 2011 18:02 (UTC +04:00)

Azerbaijan, Baku, Jan. 24 / Trend U.Ismayilova / 

In 2011, the insurance market in Azerbaijan will grow by 25-30 percent compared to 2010, Alfa Sigorta Board of Directors Chairman Khayal Mammadkhanli said.

The market growth will be achieved mainly through compulsory insurance on labor ability loss in production, as well as application of the law on compulsory types of insurance, Mammadkhanli said. Currently, a bill on compulsory types of insurance is under discussion of the parliament.

A 20-percent growth is expected in the market with the introduction of the new law due to a large share of compulsory insurance of civil liability of vehicle owners (OSAGO). Additional growth can be achieved through compulsory insurance on labor ability loss in production, the potential annual growth of which is 50-100 million manat.

There are 27 insurance companies and one reinsurance company in Azerbaijan. The total amount of premiums of all insurance companies hits 155.59 million manat, and payments hit 53.83 million manat in 2010. The insurance charges fell by 4.73 percent (163.31 million) and payments - by 1.43 percent (53.07 million manat).

The official exchange rate is 0.7974 manat to $1 Jan. 24.