"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)