Azerbaijan’s Insurers Association predicts market trends
Azerbaijan, Baku, 21 June / Trend, A. Akhundov /
In the future, the Azerbaijani insurance market will grow mainly in the life and health insurance fields, chairman of the Insurers Association Orkhan Bayramov said in an interview to the magazine published by Romanian PR-company Media XPRIMM and dedicated to the insurance market of Azerbaijan.
The magazine's special issue is dedicated to the IV International Insurance Forum being held on June 20-21 in Baku.
"With the introduction of the law 'On mandatory types of insurance', the growth of the insurance market reached 60 percent in 2013. However, this does not mean that the growth rate is only guaranteed through compulsory insurance; it accounts for 35 percent growth. Adoption of this law has allowed companies to simultaneously offer packages for voluntary types of insurance. We believe that this trend will continue in 2014. Growth trends in the voluntary insurance market will continue to grow, while the increase in compulsory insurance will slow down," Bayramov said.
According to him, the main drivers of the market are car and property insurance, but the Association believes that in the near future, life insurance and health insurance will occupy the leading positions.
"A lot of work has been undertaken by us for the development of these types in terms of improving the legal framework and the study of international experience," Bayramov said.
According to him, the adoption of the law 'On mandatory types of insurance' led to a broader coverage of population by the insurance with 7 out of 10 families in Azerbaijan having insurance.
"We believe that the launch of mandatory health insurance will result in the use of insurance products by every citizen of the country. This trend encourages insurance companies to develop and offer new products. We believe that the market in the coming years will develop more in terms of quality rather than quantity indicators. We expect improvement in the quality of services offered by companies with a range of services and the rates for products and services. We believe that the start of online sales will mark the main innovation in the market in 2013, " Bayramov said.