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Fees on voluntary types of insurance in Azerbaijan increase

Finance Materials 30 September 2021 14:57 (UTC +04:00)

BAKU, Azerbaijan, Sept. 30

By Zeyni Jafarov - Trend:

Fees for voluntary life insurance in Azerbaijan from January through August 2021 increased by 22.4 percent, or 39.8 million manat ($23.4 million), compared to the same period of 2020 – from 177.7 million ($104.5 million) to 217.5 million manat ($127.9 million), Trend reports, referring to the statistical report of the Central Bank of Azerbaijan (CBA).

The share of accumulative insurance in the total structure of voluntary life insurance was about 86.6 percent. Fees on it increased by 26.6 percent or 39.6 million manat ($23.2 million), compared to the same period of 2020, and exceeded 188 million manat ($110.5 million).

The share of death insurance in the total volume of voluntary life insurance was 12 percent. Fees for this type of insurance decreased by 6.5 percent, or 1.8 million manat ($1 million) year-on-year and amounted to 26.4 million manat ($15.5 million), compared to 28.2 million manat ($16.5 million) in 2020.

The share of terminal illness insurance and disability insurance exceeded 1.3 percent, or 2.8 million manat ($1.6 million), compared to 746,000 manat ($438,824) in 2020, which is 4 times less.

Insurance payments under voluntary life insurance increased by 17.3 percent over the year, or by 28 million manat ($16.4 million), and reached 190.4 million manat ($112 million), compared to 162.3 million manat ($95.4 million) over the reporting period of 2020.

Almost all of the premiums paid (98.8 percent) were for cumulative life insurance –188.1 million manat ($110.6 million) – an increase of 16.5 percent over the year, or 26.7 million manat ($15.7 million).

In total, fees for voluntary types of insurance in Azerbaijan increased by 9 percent, or by 33 million manat ($19.4 million), from January through August 2021 – from 365.8 million ($215.1 million) to 398.8 million manat ($234.5 million), compared to the same period of 2020.

Payments in this segment increased by 17.6 percent, or by 38.6 million manat ($22.7 million), year-on-year – from 219 million ($128.8 million) to 257.7 million manat ($151.5 million).

The life insurance market in Azerbaijan has been operating since 2011. Some 5 companies have licenses to provide life insurance services: PASHA Life, Ateshgah Life, Qala Life, Xalq Life, and Mega Life Insurance.

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