Baku, Azerbaijan, Dec. 12
By Taleh Mursagulov – Trend:
The compulsory real estate insurance market in Azerbaijan may double in 2019, Chairman of the board of the Azerbaijan Insurers Association (AIA) Mustafa Abbasbayli told Trend Dec. 12.
He said that the penetration rate of compulsory real estate insurance in Azerbaijan is 10-15 percent. Measures are being taken to increase the premiums on this type of insurance, he noted.
“In particular, the plans include establishing cooperation with the State Real Estate Register Service, in order to identify which facilities aren’t insured,” said Abbasbayli.
He added that the main task regarding the compulsory type of insurance is the development of this type of insurance among individuals, since almost all facilities belonging to legal entities are insured.
“The penalty for non-compliance with the rules on compulsory real estate insurance is less than the compulsory insurance of vehicles,” he said. “The code of administrative offenses provides for a penalty for evading real estate insurance, but an appropriate regulatory mechanism hasn’t been created yet. Regarding all these issues, some proposals have already been submitted to the Financial Market Supervisory Authority of Azerbaijan. Active work is underway in this direction.”
The fees for compulsory insurance of real estate in Azerbaijan in January-October 2018 amounted to 25.299 million manats, which is 4.1 percent of all fees. At the same time, payments amounted to 3.284 million manats.
Presently, 13 insurance companies that are members of the Compulsory Insurance Bureau (Ateshgah Insurance OJSC, Standard Insurance OJSC, AtaInsurance OJSC, Xalq Insurance OJSC, PASHA Insurance OJSC, AXA MBASK OJSC, AzInsurance OJSC, AzerInsurance state insurance commercial company, Meqa Insurance OJSC, Silkway Insurance OJSC, Azerbaijan Senaye Insurance OJSC, Qala Insurance OJSC, Gunay Insurance OJSC) operate in Azerbaijan.
(1.7 manats = 1 USD on Dec. 12)
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