According to Azer ALIYEV, chairman of the Azerbaijan Insurers Association (ASA) and chairman of the Board of Ateshgah Sigorta, the decline in life insurance mainly comes from the recent legislation changes in universal life insurance, whereas the growth on Motor Hull was supported by bank loans and strong demand based on improving insurance culture, and voluntary health insurance increased thanks to the improving working conditions of employees.
ALIYEV believes that the insurance market remains one of the priority areas of the national economy and the government pays special attention to it. Experts are sure that in the mid-term, certain types of insurance will grow thanks to active bank lending, property insurance and agroinsurance. The level of the Azeri insurance market today can be considered as stably developing. However, it is really necessary to improve the law on compulsory insurance types.
In MTPL, the recent introduction of an electronic system registering insured events will allow to carefully analyze the loss ratio on this segment. However, many local companies are not interested in this insurance type and it negatively affects the overall quality of services. As for agro insurance, establishment of an agro insurance fund within the framerowk of the law "On agro insurance", which was adopted this year, should contribute to its development and increase the sustainability, ALIYEV noted.
According to 3Q2019 results, in terms of GWP, Ateshgah insurance group ranked 4th and 5th on the market among the total 22 insurance companies. From January to October 2019, the group's total GWP amounted close to AZN 60 million (~EUR 31.61 million). The group plans to introduce new individual insurance products for real estate, Motor Hull and life insurance, starting next year, Trend reports.
*EUR 1 = AZN 1.8980 (as of 01.11.2019)