BAKU, Azerbaijan, Nov. 19
By Matanat Nasibova - Trend:
From January through October 2019, premiums on voluntary medical insurance rose by almost 10 million manat ($5.8 million), Head of the Azerbaijan Insurers Association and Head of the Ateshgah Sigorta insurance company Azer Aliyev told Trend.
This is quite a positive result, Aliyev noted.
“During the reporting period, voluntary car insurance (CASCO) also showed an increase of almost 20 percent,” the head of the company added. “However, life insurance market saw a decline of almost 40 percent. I think that further growth will continue for products of voluntary medical insurance and CASCO, and recession will continue in the direction of life insurance.”
Aliyev said that the current level of the Azerbaijani insurance market can be assessed as steadily developing one.
“In general, we can say that there is an active growth in the car insurance sector,” the company’s head noted. “The main shortcomings of our market consist of not very active work in the direction of preparation and implementation of legislative initiatives, there is a great need to improve the legislative framework, including the Law on Compulsory Types of Insurance, articles of the Tax Code directly affecting the insurance industry. I believe that insurance premiums by the end of the year will be almost the same as last year, despite a sharp decrease in premiums regarding the endowment insurance.”
Aliyev added that the insurance market remains one of the priority areas for the development of Azerbaijan’s national economy and special attention is paid to this sector by the state.
“In order to increase the efficiency of the insurance market, legislative amendments are mandatory,” the company’s head added. “Without taking such measures, it is somewhat unreal to wait for active growth in the insurance market.”
In 2018, Azerbaijani insurance companies collected premiums worth 728 million manat ($429.1 million) and made payments for 240.3 million manat ($141.6 million).
Premiums on voluntary types of insurance amounted to 536.2 million manat ($316 million), payments - 172.5 million manat ($101.6 million).
Fees on compulsory types of insurance amounted to 191.8 million manat ($113 million), payments - 67.8 million manat ($39.9 million). Voluntary types of insurance accounted for 73.7 percent of market fees, mandatory ones - 26.3 percent, payments for voluntary types of insurance accounted for 71.8 percent and payments for mandatory types of insurance accounted for 28.2 percent.
There are 21 insurance and one reinsurance companies in Azerbaijan.
The Azerbaijan Insurers Association was established in 2006.
($1= 1.7 manat on Nov. 19)