Azerbaijan, Baku, Jan. 31 / Trend, A. Akhundov /
Last year laid a good foundation for the further development of the Azerbaijani insurance market, head of the State Insurance Supervision Service under the Finance Ministry Namiq Khalilov said on Wednesday.
"2012 laid a good foundation for the further development of the Azerbaijani insurance market in terms of better public awareness," he told Trend. "I think that this will create a favorable environment for the further development of voluntary kinds of insurance."
The total volume of premiums of all companies operating in the country hit 342.52 million manat (annual growth of 60.8%) as of 2012, and payments worth 93.86 million manat (an increase of 52.45%) during the period.
"We observed dynamic growth in the market in 2012," he said. "This was partly connected with the introduction of the new law on "Compulsory kinds of insurance", partially with the development of different types of voluntary insurance. Last year was a year of mass insurance development, a year of agency sale growth."
The process of using the new law on "Compulsory insurance" started on Dec. 16, 2011. According to it, types of compulsory insurance - real estate insurance, civil liability while exploiting real estate were introduced. The insurance amount on compulsory liability insurance of vehicle owners and passenger insurance were increased.
"Earlier, the insurance market was greatly dependent on banking, but this year the situation is being changed, and not only through the development of compulsory kinds of insurance," he said. "This is also connected with the development of voluntary insurance, which does not apply to banking. I think this process will continue, although the banking business in the insurance market (particularly, it concerns mortgage and car motor insurance) is still significant."
There are 28 insurance companies and one reinsurance company in Azerbaijan.
The official exchange rate is 0.7845 AZN/USD on Jan. 31.