This growth was mostly due to the voluntary types of insurance such as: Ships insurance (+581%), mandatory immovable property (+114%), Ships liability insurance (+91%), GTPL insurance (+80%), Motor Vehicle liability (+46%), mandatory Liability for owners of motor vehicles up by almost 20% and others type of insurance.
A significant growth in terms of premiums was marked by immovable property insurance, to AZN 18.18 million. In the reporting period, 67,112 thousand insurance agreements on compulsory insurance of real estate were concluded by the insurers-members of Bureau of Compulsory Insurance. The positive result is due to high potential of the development of the property insurance segment in Azerbaijan.
The large infrastructure projects also stimulate the development the other types of insurance as compulsory life insurance against industrial disability, GTPL insurance, Engineering, Aircraft, Ship and Cargo insurance, etc.
Starting October 1st, 2015 in Azerbaijan has launched AUDATEX software system of continuous assessment of damage caused to the car during the road accident, which would help to increase transparency in this field.
It is important to note, that Azerbaijan has joined the international Green Card System of motor insurance. The Bureau of Azerbaijan was accepted as a Transitional Member with effect from January 1st 2016.
In the reporting period, the life insurers' gross written premiums increased by 17.55%. The main reason for this growth is the increasing interest of the population in life insurance products due to investment and financial benefits offering by this line; growth of incomes of the population along with the continuous education activities of insurance companies and the regulator.
In Azerbaijan the compulsory life insurance against industrial disability arising out of industrial accidents and occupational illnesses was adopted 4 years ago and during this time reached a high popularity. Moreover, the State Labour Inspectorate Service organized controlling mechanisms on compulsory life insurance and as a result of this activity the compulsory life insurance has increased. Otherwise, the companies with no compulsory life insurance have to pay penalty fees.
Access www.xprimm.com and download the 1H2015 Azerbaijani insurance market statistics.
Market portfolio and market ranking (in EUR and AZN):
- Gross written premiums
- Paid claims
- Growth rates
- Market shares
|More about the Azeri insurance market evolution in 1H2015 will be available in the forthcoming issue of XPRIMM Insurance Report 1H2015, to be released on October, 18th, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal, 18:30 - 20:30 hours).|