Baku, Azerbaijan, Oct. 9
By Taleh Mursagulov - Trend:
Next year, Azerbaijan’s insurance market will undergo changes, which will lead to the decrease in premiums on certain types of insurance, Chairman of the Azerbaijan Insurers Association (AIA) Mustafa Abbasbayli told Trend Oct. 9.
He noted that the development of the market next year can be promoted by such types of insurance as agricultural insurance or insurance against accidents at work.
In particular, if the law on agricultural insurance is adopted, next year, premiums on this type of insurance are forecast at 70-100 million manats, he said.
“We have recently signed a memorandum with Azerbaijan’s Ministry of Labor and Social Protection of the Population on the insurance against accidents,” he added. “After this memorandum, next year we expect premiums on this type of insurance to grow 60 million manats.”
As for the possibility of raising the minimum capitalization requirements for insurance companies against the background of serious growth in the market, Abbasbayli stressed that such issues are not being considered.
Presently, the capital requirement is 5 million manats for the existing companies and 10 million manats for the new ones.
In January-August 2018, insurance companies operating in Azerbaijan collected premiums worth 517 million manats, which is 40 percent more than in the same period last year.
Payments of the insurance companies over the same period amounted to 169 million manats, which is 1.2 percent more than the figure for the first eight months of 2017.
(1.7 manats = 1 USD on Oct. 9)