AIIF2024 – A time for strategic changes in the Azerbaijani insurance market

20 June 2024 — Daniela GHETU

Today started in Baku the 2024 edition of the Azerbaijan International Insurance Forum, event organized by the Azerbaijan Insurers Association and XPRIMM, with the official support of the Central Bank of the Republic of Azerbaijan.

With over 300 attendants, from 13 countries, the event benefitted from the support of a large array of Azeri insurers.

Taleh KAZIMOV, Governor of the Central Bank of the Republic of Azerbaijan, the supervisory and regulatory body also for the insurance market, has emphasized that Azerbaijan has become a secure and reliable partner in the Caucasus region and the insurance market in part of this evolution.

“This is especially true for the insurance sector. In recent years, significant institutional changes have been taking place here, and the infrastructure is changing. First of all, I would like to note the positive dynamics over the past three years. Assets have increased by 34%, and capital by more than 7%. Over this period, since 2019, premium insurance payments have increased by 26%,” he said.

He has also stressed out that the sector went through several strategic changes. “Measures have been taken to build reserves and strengthen institutions, following international legislation and the principles of insurance market provision, as well as to ensure reinsurance and underwriting. New methods have been introduced to increase public awareness of insurance services and improve the compulsory insurance mechanism. Access to various options of life insurance mechanisms has also been ensured,” Kazimov explained.

On the side of the market players, Ulviyya JABBAROVA, Chairman of the Supervisory Board of ASA - Azerbaijan Insurers Association, underlined the need of continuing and accelerating reforms in several key areas. “Digitalization and electronic innovations are top priorities, as indispensable tools for providing affordable and high-quality services. The next area is a corporate or sector–wide capacity indicator - data. The reality is that a market participant with rich database is always one step ahead. But together with acquirig and computing more data, the need for improving information security is stronger. Our sector works with large amounts of information in digital environment. That is why ensuring cybersecurity is also a top priority," Jabbarova emphasized.

She also mentioned the need for product diversification and improvement, as well as for developing the distribution channels and preparing for the regulatory changes ahead.