Azerbaijan hopes insurance share in GDP to reach 1 percent

Azerbaijan, Baku, Sept. 29 /Trend, A.Akhundov/

Azerbaijan's Ministry of Finance aims to bring the share of insurance in GDP to one percent, Deputy Finance Minister Azer Bayramov told Trend on Thursday.

"We'll see if we can reach it by the end of the year as the country's GDP is growing," said Bayramov.

In January-August 2011, it reached 0.6 percent.

According to him, the entry into force of a law on compulsory insurances will play an important role in achieving this goal."

After the introduction of new types of compulsory insurance in Azerbaijan, the growth rates of the insurance market will continue to exceed over the rate of GDP growth, Deputy Finance Minister Azer Bayramov told reporters earlier.

"Over the past seven years, Azerbaijan's GDP grew three times, the amount of insurance premiums of all companies - 3.7 times," said Bayramov.

According to him, given the slowdown in the GDP growth, increasing the share of the insurance market in Azerbaijan's GDP to two to three percent in the medium term is quite real.

"It would be desirable to achieve this level for two or three years, but I think that the market will reach this level in the medium term," said the official.

According to the draft of long-term economic development strategy of Azerbaijan in 2011-2025, prepared by the Economic Development Ministry, the share of insurance fees in the country's GDP will be increased from 0.5 percent in 2009 to at least three percent in 2025. In 2010, this figure fell to 0.37 percent of GDP.

According to the strategy draft, the amount of insurance market in 2009 totaled $215 million, and by 2025 is expected to reach $3.108 billion.

According to the State Insurance Supervision Service under the Finance Ministry of Azerbaijan, the total amount of premiums in 2010 amounted to 155.59 million manat ($195 million at the exchange rate as of the end of last year, 0.7979 AZN to 1 USD).

Accordingly, upon government forecasts, the insurance market will grow 16 times by 2025.
To achieve these objectives, the Ministry considers it necessary to increase the level of capitalization of insurance companies, expand the range of products and services (reinsurance, life insurance, etc.), as well as create a special fund for insurance in the agricultural sector, etc.

According to the schedule of capitalization of insurance companies, by 2013 the minimum level of capital for insurers was set at 5 million manat, reinsurers - 10 million manat.
Official exchange rate on Sept. 29 is 0.7868 AZN/USD.

Subscribe to Trend in Google News! Subscribe
Uzbekistan shares domestic COVID-19 data for December 7
Uzbekistan shares domestic COVID-19 data for December 7
Chinese company plans to build a technopark and solar power plant in Uzbekistan
Chinese company plans to build a technopark and solar power plant in Uzbekistan
Price indexes of industrial, trade sectors at Uzbek stock exchange fall
Price indexes of industrial, trade sectors at Uzbek stock exchange fall
Loading Bars
Azerbaijan’s liberated territories have great potential for employment – minister
Georgia’s textile imports from Turkey increase
Azerbaijan suffered from equal approach to aggressor and aggression victim - MFA
Iran records increase in transit of goods via trucks through its territory
Azerbaijan working on several youth development projects - Minister of Youth and Sports
Possible opening of cruise line between Azerbaijan, Russia has high potential - Astrakhan governor (Exclusive)
Azerbaijan sees increase in concluded labor contracts over past four years - minister
Azerbaijan’s Central Bank talks increase in non-cash payments (PHOTO)
Azerbaijan to be fully covered by internet by late 2024 - deputy minister
Georgia releases COVID-19 data for December 8
Developing contactless payments to help further digitalize Azerbaijan's economy - VISA
Azerbaijan talks progress of tunnel road building between Goygol, liberated Kalbajar districts
Azerbaijani oil prices increase
Baku holds Azerbaijan Career Development Forum (PHOTO)
Business centers of Azerbaijan, Russia’s Astrakhan sign memorandum of co-op (PHOTO)
Baku port transports goods in transit mainly to Central Asia, Europe – head of main cargo terminal
Kazakhstan eyes increasing requirements for commodity exchanges
Georgia launches energy reform program, backed by KfW, EU
Uzbekistan shares domestic COVID-19 data for December 7
Iranian currency rates for December 8
Oil prices ease as investors wait for assessment of Omicron's impact
EIA revises down forecasts for Azerbaijan’s 2022 petroleum production
Azerbaijan to commission new enterprises for production of sulfuric acid and glass containers
MFA issues statement on 30th anniversary of Azerbaijan's membership in OIC
Iran's Energy Exchange announces products to be on sale on Dec. 8
OSCE Minsk Group Co-Chair countries release statement
Gunmen torch bus, kill 30 passengers in Nigeria's Sokoto state
Azerbaijan’s Central Bank talks dev’t strategy for securities market until 2023
Pfizer Shot Provides Partial Omicron Shield in Early Study
Australia joins diplomatic boycott of Beijing Winter Games
704 new COVID-19 cases reported in Kazakhstan
France reports record daily COVID-19 count
U.S. Senate backs $650 million missile sale to Saudi Arabia
Mandatory vaccination should be a last resort, says WHO Europe chief
Bolsonaro dismisses vaccination requirement for entry into Brazil
Israel announces completion of high-tech barrier around Gaza
Northern Ireland reports first Omicron cases
Police officer killed in NW Pakistan's firing
Sweden to reintroduce many COVID-19 measures as cases rise
Armenia has no choice but to open Zangazur corridor - experts
Turkey, Qatar strengthen bilateral ties with 15 new deals
Georgian parliamentary delegation visits Washington
Chinese company plans to build a technopark and solar power plant in Uzbekistan
WHO donates 260k packs of intravenous solutions to Iran
Cost of cargo transported via trains up in Azerbaijan
International Court of Justice grants Azerbaijan's request for temporary measures against Armenia
Western media shows neutral approach to Azerbaijan’s Zangazur corridor - Head of Trend News Agency’s Foreign Projects Directorate
Azerbaijan donates 100,000 doses of Sinovac vaccine against COVID-19 to Burkina Faso (PHOTO)
Information spread in Armenian media about killing of illegal militant on territory of Azerbaijan is baseless – MoD
Azerbaijani MFA comments on statement of Armenian foreign ministry
International Court of Justice urges Armenia to take urgent measures against groups and individuals making violent calls on ethnic grounds
International Court of Justice refused to secure Armenia's claim for immediate return of so-called POWs
Azerbaijan completes over half of construction of Barda-Aghdam highway
Azerbaijan building new high-speed road in Shusha city
Azerbaijan-Iran plan to build new bridge to increase traffic
Iran Securities and Exchange Organization focusing on strengthening Capital Market Stabilization Fund
Iran looks to expand agricultural ties with Romania
EIB, EBRD touch on Georgia’s economic growth
Price indexes of industrial, trade sectors at Uzbek stock exchange fall
Georgia shortens terms of COVID-19 booster vaccination
Azerbaijan shares data on 10M2021 oil exports to Vietnam
Uzbekistan shares stats on export of textile products for 10M2021
Kazakhstan's KMG talks project of new gas processing plant in Mangistau
Iran's Bahar Azadi gold coin price increases
Azerbaijan sees decrease in import of vehicles, spare parts over 10M2021
Volume of loaded/unloaded cargo in Iran’s Qeshm port up
Value of Azerbaijan's export to Turkmenistan up for 10M2021
Azerbaijan’s energy ministry opens tender to buy technical support services
Azerbaijan-Iran to take steps to increase trade turnover – Iranian ambassador
Shootout occurs on border between Azerbaijan and Iran - offender neutralized
Baku Int'l Sea Trade Port reveals details of dev’t strategy until 2035
First harvest gathered in mushroom greenhouse in Turkmenistan’s Mary region
Azerbaijan-Iran implementing agreements on joint cooperation – ambassador
Germany's next finance minister stresses price stability
SOFAZ shares estimates of budget revenues for 2022
Iran opens office for cargo barter with Pakistan
Number of legal entities restoring activity in Azerbaijan slightly increases in 11M2021
President Ilham Aliyev receives President for Exploration and Production of TotalEnergies (VIDEO)
Indian embassy in Baku holds webinar on electronic and computer hardware/software products (PHOTO)
Sport in Azerbaijan - integral part of state policy, deputy minister says
Bank of Israel bought $4 bln of FX in Nov, hits $34 bln in 2021
India's Rajnath Singh attends maiden 2+2 Dialogue with Russia
Less urgent need to rebuild stocks to weigh on coal demand
Omicron poses a major risk to global oil demand
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,530 more COVID-19 cases, 1,864 recoveries
Azerbaijan, Russia’s Astrakhan sign action program to develop co-op (PHOTO)
Georgia shares data on cigarettes turnover in 10M2021
President Ilham Aliyev signs order appointing new chairman of State Insurance Commerce Company
Georgia’s imports of fuel and lubricants from Kazakhstan plummet
EU health bodies recommend mix-and-match of COVID-19 vaccines
Georgian apple exports on rise
Number of taxpayers increases in Azerbaijan over 11M2021
Kazakhstan increases volume of production of crude oil and oil products
Kazakhstan shares data on coal production
Turkmenistan becomes top oil exporter to Georgia
Armenia should fulfill requirements of documents signed after Second Karabakh War – Turkish official
Google Pay begins operating in Israel
Volume of electricity production in Uzbekistan for 10M2021 unveiled
Azerbaijan records growth in cost of air cargo transport for 10M2021
All news