AZERBAIJAN: a positive tendency in GWP and paid claims to continue for the next medium and long term

6 July 2021 —
The domestic insurance market coped to avoid the large-scale negative effects of the COVID-19. However, the summary indicators for January and February indicate a relatively negative impact, at the same time, according to the results of the first quarter of 2021, there is a positive tendency, said Executive Director of the Azerbaijan Insurers Association (AIA) Elmar Mirsalayev for Trend.

Elmar Mirsalayev noted that from January to March both GWP and paid claims recorded an upward trend.

"In general, GWP exceeded total paid claims by more than eight times, which is a positive fact. I believe that ensuring the dynamics of growth in insurance premiums is clear evidence of the successful and persistent resistance of the local insurance market to the challenges of the pandemic, and the increase in paid claims is an indicator of the high activity of insurance companies in the country", he said.

Executive Director of the AIA added that dynamic growth will continue for the next medium and long term, as steps are constantly being taken to raise interest in insurance services from existing and potential policyholders. Also, the measures of the Central Bank of Azerbaijan to capitalize the insurance sector, strengthen its immunity to macroeconomic shocks and remove participants who have lost financial stability, are important from the point of view of reliable development of the insurance market.

The Supervisory Board of AIA approved a three-year strategy for the development and stimulation of the local insurance market in April this year. "In particular, this strategy pays attention to the formation of relations with public and private organizations, the preparation of draft amendments to the legislation in accordance with modern market conditions and the implementation of the mutual exchange of personnel and experience with the subjects of the world insurance market", he added.

Elmar Mirsalayev noted that in the insurance market in the short and medium-term, steps were outlined for intensive work in the direction of educating and informing citizens. AIA has established cooperation with the Turkish Insurance Union, the Azerbaijan Entrepreneurs' Confederation, the Entrepreneurship Development Fund, the Center for Social Research and the Association of Accountants and Risk Specialists.