Azerbaijan: Reinsurers are hoping to revive the market through mandatory insurance

8 August 2011 — Oleg DORONCEANU
chingiz_mehdiyevAfter two years of downfall as a consequence of the economical crisis, the introduction of mandatory insurance will determine the profile market to increase, considered AZ Re, the main player on the reinsurance market in this country, within the International Insurance Forum in Azerbaijan (July 7-8, 2011). The event is organized by Insurers Association in Azerbaijan in partnership with Media XPRIMM. The awaited increase for 2011 is by 10% while 2012 the industry might get to EUR 240 million (a 12% evolution in comparison with 2011).

AZ Re focuses its optimistic forecast for the Azeri market for the recent adoption of mandatory insurance law which refers to the MTPL, household insurance, travel, and civil liability.

The positive factors for the new market trend could also be, according to the President of AZ Re, the stimulation of the insurance segment by eliminating the profit taxations in which case this sum is used in capital increase for the insurance companies and also the recent entry of life insurance players on the market.

Currently on the Azeri market activate 25 non life companies and 3 life insurers, one reinsurance society and 7 brokers. Regarding the concentration on the Azeri market 2010 wise, the first 10 companies manage 80% of the underwritings.

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