Market participant: Insurance market to increase 35 percent in Azerbaijan in 2011

Business Materials 12 May 2011 21:00 (UTC +04:00)

Azerbaijan, Baku, May 12 /Trend, A.Akhundov/

As a result of activities in 2011, the insurance market of Azerbaijan will increase by 35 percent compared to 2010, chairman of the Qarant Sığorta Insurance Company Vagif Hasanov said in an interview with Trend on Thursday.

"Without life insurance, the market should grow by 20 percent, and if to take into account the life insurance, the increase in the overall market will be about 35 percent," Hasanov said.

According to the State Insurance Supervision Service at the Finance Ministry of Azerbaijan, the total amount of premiums in 2010 was 155.59 million manat.

According to Hasanov, one of the motivating factors of market growth will be a possible change to the tariff policy of TPL insurance.

"Only our company's charges and payoffs on TPL insurance increased by 50 percent compared to last year," Hasanov said.

The new draft law on compulsory insurances, which is discussed in the country's parliament, regulates four types of compulsory insurance - real estate, TPL, passenger insurance, insurance of liability in the operation of real estate.

The draft law contains a differentiated approach in determining the insurance rate, depending on the type of vehicle. The fee for compulsory motor TPL insurance on the property amounts to 5,000 manat (currently 1,000 manat), health - 50,000 manat (5,000). At present, this activity is regulated by the law of 1996.

Azerbaijan plans to establish an insurance bureau in order to develop compulsory motor TPL insurance. This bureau will serve as a central database of all vehicles in the country.

Bureau members will be insurance companies that are licensed for the provision of compulsory motor TPL insurance services.

There are 28 insurance companies and one reinsurance companies in Azerbaijan.
Official rate on May 12 is 0.7908 AZN/USD.