AZERBAIJAN: FIMSA expects the market to overcome the last year's result

According to Ibrahim ALISHOV, executive director of the Azerbaijan Financial Market Supervisory Authority (FIMSA), GWP on the Azeri market in 2018 may exceed last year's figure.

"If last year, premiums for Azerbaijan's insurance sector amounted to almost AZN 568 million, in the first eight months of this year, insurance companies collected premiums worth AZN 517 million," he said. "This shows that the growth of Azerbaijan's insurance sector will continue in 2018, as well." According to ALISHOV, FIMSA is also expecting to significantly increase the insurance penetration degree.

"In line with the strategic roadmap for the development of the financial sector, the share of the insurance market in Azerbaijan's GDP should reach 1.6% by 2020," ALISHOV said. "We are successfully moving towards this indicator. The share of the insurance sector in GDP was 0.9% last year; this figure was already 1.1% following the seven months of this year."

Azerbaijani insurers expect the insurance market to grow by 40% by the end of the year, said the Chairman of the Azerbaijan Insurers Association (AIA) Mustafa ABBASBAYLI. "The insurance market of Azerbaijan has been showing stable growth for many years. Every year the market has shown a 10% increase. But this year the market shows a growth of 30%. This can be seen from the results of the eight months of 2018. Therefore, we expect that by the end of the year the indicator of the insurance market of Azerbaijan will reach the level of AZN 750 million, which means an increase of 40%," explained ABBASBAYLI. He noted that the main task facing the insurance market is to achieve proportional growth of all types of insurance. "Today some types of insurance in the country are growing quite intensively, but other types are staying at a stable level. We want to achieve proportional growth in all types of insurance. Our plans include an increase in compulsory industrial-accident insurance from the current AZN 40 million to AZN 100 million. This means a 150% increase in this type of insurance," he added.

For 8 months of 2018, Azeri insurers generated AZN 517 million of GWP (+40% y-o-y). Paid claims for the reported period amounted to AZN 169 million (only +1.2% y-o-y).

For approximative calculation

*EUR 1 = AZN 2.0431 (as of 01.01.2018)

EUR 1= AZN 1.9859 (as of 31.08.2018)





Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

AZERBAIJAN: the insurance market in 2018 may reach AZN 600 million

The Azeri market will continue to grow in 2018 according to the Chairman of the Mediator Committee of the Azerbaijani Insurers Association (ASA), Hayal MAMEDHANLI. Based on his opinion, the market may reach AZN 600 million this year (AZN 30 million more than in 2017).

2018-09-19

ON THE MOVE

MetLife named its EMEA head as CEO of Japan unit

MetLife announced that Eric CLURFAIN, currently Executive Vice President and Head of EMEA, has been named Chairman, President and CEO of MetLife Japan - the company's second largest market globally and its largest retail life insurance business, effective Feb. 1, 2019, following approvals.

06.12.2018

American International Group appoints new CFO

American International Group announced that it has appointed Mark LYONS to the role of Executive Vice President & Chief Financial Officer (CFO). He succeeds Sid SANKARAN, who will remain at AIG in an advisory capacity through the year-end reporting process for fiscal year 2018.

06.12.2018

Wolfgang STOCKMEYER appointed as VIG's BTA Baltic new Board Chairman

Wolfgang STOCKMEYER (49) has been appointed, on 30 November 2018, Chairman of the VIG's subsidiary BTA Baltic Management Board, as part of a series of changes in the composition of its Management Board operated by the main player of Austrian Group in the Baltic region.

05.12.2018

TOP EVENT

Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.

06.11.2018

IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.

05.11.2018

See all