Deputy minister: Azerbaijani insurance market growth rate to increase
Azerbaijan, Baku, April 18 / Trend A. Akhundov /
The law on mandatory insurance fully justifies itself. Azerbaijani insurance companies have started its using since December 16, 2011, Deputy Finance Minister Azer Bayramov told Trend today.
The new law regulates four types of compulsory insurance - real estate, liability of owners of motor vehicles, passenger insurance, liability insurance while exploiting real estate.
"We observe serious intensification of the insurance market and a very considerable increase in its volume, especially on the types of insurance, regulated by this law," Bayramov said.
The companies included in the compulsory insurance bureau and have the right to engage in these kinds, collected 10.95 million manat in compulsory motor vehicle liability insurance in January-March. This exceeds the figure by 12 times for the same period of 2011.
In general, 51.9 percent fees for compulsory kinds and 13.4 percent of all premiums collected in the market during this period fell to compulsory motor vehicle liability insurance in January-March this year.
The companies have collected 1.38 million manat and 58,200 manat oncompulsory real estate insurance and civil liability while exploiting real estate.
All 10 members of the bureau render services for three types of compulsory insurance, except for compulsory insurance of passengers.
The founders of the bureau are six companies - Pasa Sıgorta, Atesgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta and Standard Insurance. AzSıgorta, Alfa Sıgorta and the Azerbaijani State Insurance Commercial Company and Meqa Sıgorta joined the bureau later.
At present, the compulsory insurance of passengers in Azerbaijan does not work yet. The only company, which applied for permission to the Azerbaijani Finance Ministry to deal with this type of insurance, is İpek Yolu Sıgorta company (former Azal Sıgorta).
The fees for compulsory insurance in general hit 21.1 million manat in Azerbaijan in January-March, increasing by 59.2 per year percent per year. Their share in total volume of fees decreased from 27 to 25.85 percent. However, payments for these types decreased by 11 percent and amounted to 1.77 million manat compared to January-March last year.
The total volume of premiums of all companies operating in the country hit 81.6 million manat (increased by 66.17 percent) in the first quarter of 2012, and payments for the period were made to the amount of 16.6 million manat (increased by 28.2 percent).
"This is just the beginning of the year," he said. "We see a very serious growth of the market. I think that its growth as of this year will be higher than on the basis of last year. The first quarter shows that the situation is quite optimistic."
In 2011, Azerbaijan's insurance market increased by 36.89 percent, the total amount of fees totaled 212.98 million manat.
There are 28 insurance and one reinsurance companies in Azerbaijan.
The official exchange rate is 0,786 AZN/USD on April 18.