AZERBAIJAN: insurance market in 2018 may reach a record GWP volume, of over AZN 700 million

For 11 months of 2018 Azeri insurers generated GWP of AZN 663.9 million (31.7% more y-o-y) and paid claims amounted to AZN 224.1 million (3% less y-o-y), according to the Financial Markets Supervision Chamber of Azerbaijan (FIMSA).

Based on FIMSA data, GWP of the voluntary insurance amounted to AZN 485.3 million, paid claims reached AZN 162.4 million. GWP of compulsory insurance amounted to AZN 178.6 million, paid claims - AZN 61.7 million. Thus, the share of voluntary types in total premiums was 73.1%, and the share of compulsory - 26.9%. In terms of paid claims the share of voluntary insurance amounted to 72.5%, and the share of the compulsory - 27.5%.

According to the Chairman of the ASA Mustafa ABBASBEYLI, Azerbaijan is developing a road map for the development of the insurance market, including an action plan for the development of all types of insurance.

Azeri insurance market in 2018 may set a new record by exceeding total GWP of AZN 700 million. During the whole year the market had been keeping its annual growth rate at the level of 30-40%. An insurance expert, the Chairman of the insurance intermediary committee of ASA Khayal MAMMADKHANLY believes the introduction of new compulsory types of insurance and increased supervision over existing ones can give a significant impetus to the development of the market. A significant contribution to the development of the insurance market can be also made by agricultural insurance in particular. The law on agricultural insurance in Azerbaijan has already been developed, and according to Mustafa ABBASBEYLI, if this law is adopted, this type of insurance can bring additional GWP of AZN 70-100 million to the market.

*EUR 1 = AZN 1.9367 (30.11.2018)

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