The executive director of AIA noted that after the Central Bank of Azerbaijan assumed the powers of the regulator, the insurance market began to show noticeable activity in premium collection, and was also able to avoid serious negative consequences of the pandemic, which affected many sectors of the economy.
According to Elmar MIRSALAYEV, the insurance market in Azerbaijan is relatively young - the "Law on Insurance activities" was formed about 10 years ago. One of the key insurance segments is MTPL, however, insurers-members of the Compulsory Insurance Bureau in January-October 2020 reduced MTPL GWP by 6.7% y-o-y, to AZN 78.8 million (~EUR 39.67 million*), according to the Central Bank of Azerbaijan. For 10 months of 2020, MTPL accounted for 12.5% of the total market GWP and 40.8% of the GWP in compulsory insurance. MTPL paid claims in January-October 2020 amounted to AZN 47 million (-14.3% y-o-y), which is equivalent to 13.4% of all market paid claims or 83.8% of paid claims on compulsory types of insurance for the period.
"For us, the main priority in this situation is to increase the penetration rate by two or three times in both compulsory and voluntary insurance classes. We believe that if the current dynamics of development continues at a stable and growing pace next year, we will achieve this target. Therefore, we can say with confidence that the insurance market of Azerbaijan is currently at a new stage of its development", said Elmar MIRSALAYEV.
* at the following exchange rate:
1 EUR = 1.9860 AZN (30.10.2020)
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