Baku, Azerbaijan, July 26
By Azad Hasanli – Trend:
Less than 10 percent of housing in Azerbaijan is covered by compulsory real estate insurance, a source in the Azerbaijani insurance market told Trend.
“Despite the fact that this type of insurance is obligatory, currently only a small part of apartments and houses in the country have policies of compulsory real estate insurance. The reason for this is simple – it is the lack of an effective mechanism of oversight in this area.”
Creating a mechanism on the basis of the real estate register may improve the situation, the source said, adding that Azerbaijan’s insurance sector needs deeper reforms that will affect the sphere of registration of real estate.
“In fact, an apartment or a house is an important asset which due to no registration, benefits neither the owner nor the economy. For example, such property cannot be handed down or legally sold,” the source noted.
Increasing the share of insured property will ultimately contribute to the development of Azerbaijan’s insurance market, according to the source.