Azerbaijan, Baku, July 6 / Trend A. Akhundov /
About 60 per cent of the total assets of all insurance companies of the South Caucasus, 82 per cent of the share capital and 52 per cent of all insurance premiums fall to the Azerbaijani insurance market, research of the insurance market in the South Caucasus, conducted by the only reinsurance company in Azerbaijan AzRe said.
As of late 2011, the total assets of insurance companies in Azerbaijan totalled $581.9 million, Georgia - $300.1 million, Armenia - $81.6 million and the paid share capital of all companies in the three countries was $321.84 million, $41.9 million and $30.94 million respectively.
Insurers' fees in Azerbaijan totalled $270.8 million in late 2011, in Georgia - $191.2 million, in Armenia - $58.08 million and charges per capita - $29.32, $42.49 and $18.15, respectively.
'Weak aspects of the insurance markets of the South Caucasus are their being young, poor history of the insurance system of the former USSR, the narrow range of services, a lack of modern sale technology, advanced IT-platform, a low level of corporate governance, sensitivity to price and low coverage of insured people', the research said.
The strong areas are great opportunities for growth with well-educated professionals who know at least three languages, large infrastructure and energy projects, the adoption of laws on compulsory insurance, tax benefits for life insurance, gradual capitalisation and the adoption of new regulations.
There are 28 insurance companies in Azerbaijan, 14 in Georgia and eight in Armenia. Three life insurance companies and one reinsurance company work only in Azerbaijan. The number of insurance brokers in Azerbaijan is six and in Georgia 12 with Armenia having four.