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Expert: Azerbaijan's voluntary property insurance market to grow next year

Finance Materials 19 November 2019 15:15
Expert: Azerbaijan's voluntary property insurance market to grow next year

BAKU, Azerbaijan, Nov. 19

By Eldar Janashvili - Trend:

The voluntary insurance market should grow after the introduction of electronic mechanism of Compulsory Real Estate Insurance (CREI), insurance expert Khayal Mammadkhanli told Trend.

Mammadkhanli explained his forecast that CREI has a small limit and does not cover movable property, and when insuring an apartment, the idea of ​​insuring movable property will no longer seem unnecessary, as it seems now.

"A similar case was observed when the MTPL (compulsory motor third party liability insurance) system was introduced in Azerbaijan and the demand for comprehensive insurance increased, since MTPL payments did not apply to car owners. Also, after first accidents, policyholders quickly realize that in addition to CREI, voluntary insurance of movable property is also necessary. Therefore, I think this market will increase. And the insurance companies themselves, when providing real estate insurance, will simultaneously offer insurance of movable property," the expert said.

According to Mammadkhanli, the CREI can be expected to start from the beginning of next year, although this is not necessary - the residents of Baku could switch to it now - after all, it is about their real estate.

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