STATISTICS: AZERBAIJAN, FY2019: life insurance caused negative market results (-6.43%)

5 March 2020 —
STATISTICS:  AZERBAIJAN, FY2019: life insurance caused negative market results (-6.43%)
At the end of 2019, Azerbaijani market GWP decreased by 6.43% y-o-y in local currency, to AZN 681.18 million (EUR 357.85 million), while paid claims, on the contrary, saw a rapid growth (+25.47%), according to the regulator's data.

Market experts believe that the main contribution to the negative market results was made by voluntary insurance, namely, life sector. According to the experts, a significant decline comes from new tax and social benefits, provided by the legislation on life insurance, which indirectly reduced interest in this insurance type. At the same time, other types of insurance on the market either did not change or had a slight increase/decrease. A huge portion in life insurance falls on universal life products, GWP of which decreased by about AZN 50-60 million due to legislative innovations, and that was the main reason for the decline in voluntary types.

ompulsory insurance, GWP of which increased by AZN 33 million from the 2018 level, became the factor offsetting the above-mentioned decline. Moreover, all compulsory types demonstrated growth. However, "if we look at the market general trend, the results are disappointing. We can see the most undesirable situation on the market. GWP are declining and paid claims are steadily increasing. In 2019 insurance companies paid AZN 301 million (EUR 158.41 million), which is AZN 61 million more y-o-y, or 25%", experts say.

Elman RUSTAMOV, the Chairman, Central Bank, noted that the situation on the Azeri insurance market is generally stable, but there may be some minor problems. "In 2020 we'll try to revive the insurance market. We'll work to make the insurance market cover risks of both business and population. This will help to develop the market and lower the risk level. The main condition, set by the government, is that insurance companies solve problems on their own without passing them on to the state", he explained.

At the end of 2019, 22 companies were active on the Azeri market. The share of TOP-3 hasn't changed a lot and amounts to about 60%. Pasha life Insurance is leading, although the company's GWP dropped by almost 20% y-o-y. Pasha Insurance ranks 2nd, and the State Insurance Company of the Azerbaijan Republic moved to the 3rd place, shifting Ateshgah life, which ranked 3rd at the end of 2018.

Download the latest statistics for 2019 on at Azeri insurance market statistics.

  • Market portfolio and ranking (in EUR and AZN):
    • GWP
    • Paid claims
    • Growth rates
    • Market shares