STATISTICS: AZERBAIJAN, 1Q2019: GWP saw slight increase while paid claims dropped by more than 23% y-o-y

23 May 2019 —
STATISTICS: AZERBAIJAN, 1Q2019: GWP saw slight increase while paid claims dropped by more than 23% y-o-y
In 1Q2019, Azeri insurers generated GWP in the amount of AZN 201.17 million (EUR 105.38 million), 4.17% more y-o-y, according to the statistical data, published by The Financial Market Supervisory Authority of Azerbaijan (FIMSA).

Due to the favorable exchange rate of azeri manat against euro, the market growth in European currency looks more impressive (14.23%).

According to FIMSA, 64.6% of total GWP fell to voluntary insurance, while 35.4% was compulsory. The share of the life sector decreased from 37.14% a year ago to 25.62%. The non-life sector added 11.52% in the market, with GWP reaching AZN 149.64 million (EUR 78.38 million).

Market paid claims decreased by 23.32% y-o-y and amounted to AZN 46.23 million (EUR 24.22 million). The share of voluntary insurance in paid claims reached 64.7%, and the share of compulsory was 35.3%.

At the end of the 1st quarter, the Azeri market was represented by 21 companies. The TOP-3 insurers hold over 67% of the total market. Pasha Insurance ranks first among the three leaders, with GWP in the amount of AZN 64.47 million, followed by the life insurer Pasha life Insurance (AZN 39.67 million) and the State Insurance Company (AZN 31.69 million). It is noteworthy that the shares of the first two leaders decreased y-o-y, while the share of the State Insurance Company grew by more than 13%.

Hayal MAMMADKHANLY, chairman of the committee of insurance intermediaries at the Association of Insurers of Azerbaijan, believes that the market could grow by 10-15% in 2019 and in the next 2-3 years it could reach AZN 1 billion (in 2018 the figure was AZN 728 million).

"Development of compulsory real estate insurance can bring the market at least an additional AZN 100 million in GWP", MAMMADKHANLY said. "Agriculture is the second most promising market in Azerbaijan after the oil sector. However, the share of agricultural insurance in the market is very small, because many farmers are far from insurance. If we pay attention to this area, agricultural insurance can help the market increase by AZN 100-150 million. The introduction of compulsory health insurance next year will also contribute significantly to market growth", he added.

MAMMADKHANLY noted that the market is developing mainly thanks to voluntary types, and the market growth in life insurance, Motor Hull and real estate insurance is healthy. He also stressed that the Azeri insurance market can be considered one of the most developed in CIS.

"The Azeri insurance market is in third place after the Russian and the Kazakh markets. But, if compared to global markets, we, of course, are far behind. For example, in Europe, GWP per person is around USD 4000, and in Azerbaijan it is USD 50. We are far behind the world, but in CIS we are one of the most developed markets", he explained.

*1 EUR = 1.9090 Manat - AZN (March 31st, 2019)

Access and download 1Q2019 Azeri insurance market statistics.

  • Market portfolio (in EUR and AZN)
    • Gross written premiums
    • Paid claims
    • Market weight for each business line