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Azerbaijani insurance market likely to increase five-fold in medium term

Business Materials 4 May 2012 13:41 (UTC +04:00)

Azerbaijan, Baku, May 4 /Trend A.Akhundov/

The potential of the insurance market of Azerbaijan exceeds one billion manat, coordinator of business development of the Azerbaijani office of the American brokerage firm Marsh Tural Gasimov said.

"In one year, the insurance market of Azerbaijan can collect premiums worth over a billion manat. This insurance market is reborn due to activation of compulsory insurance. This gave a real boost to the market and created an opportunity to enhance and realise its potential," Gasimov told Trend on Friday.

Charges of insurance companies amounted to 212.98 million manat in 2011 (36.89 per cent growth for the year), and payments to 61.57 million manat for the period (increase of 14.38 per cent).

The total volume of premiums of all companies operating in the country amounted to 81.6 million manat in the first quarter of 2012 (growth by 66.17 per cent for the year) and payments amounted to 16.6 million manat for the period 16.6 million manat (an increase of 28.2 per cent.)

Gasimov noted that the market could grow to a billion manat and exceed this level within three to five years.

"Taking into account the current growth rates, these projections are very real," he said.
The amount of compensation paid by companies will also seriously increase.

"The number of requests for payment will increase because the size of payments increased along with increased insurance premiums for compulsory insurance. People will make claims more frequently and receive more payments. It will also give impetus to the improvement of the market," Gasimov said.

On December 16 the insurance companies of Azerbaijan started to apply the new law 'On mandatory types of insurance', which regulates four types - mandatory liability insurance for owners of motor vehicles (CTP), property insurance, liability insurance for the operation of real estate and insurance of passengers.

Official exchange rate on May 4 0.7860 AZN/USD

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