AZERBAIJAN: compulsory real estate insurance GWP increased by 18% y-o-y in January-October, while the leading compulsory class - MTPL went up only by 1.61%
"Penalty for non-compliance with the rules of compulsory real estate insurance is much lower than that of vehicles. Administration Code provides for a penalty for evading real estate insurance, but an appropriate regulatory mechanism has not been established yet. Some active work is being done in this direction", he added.
Based on the data provided by FIMSA, GWP of the compulsory real estate insurance in Azerbaijan for January-October 2018 amounted to AZN 25.3 million (about 18% more y-o-y) and its share is 4.1% of the total market. Paid claims in the segment amounted to about AZN 3.3 million (36.55% more y-o-y) and its share in total paid claims is 1.59%.
At the moment 13 companies are active in the segment of the compulsory real estate insurance in Azerbaijan, which are the members of the Bureau of compulsory insurance (Ateshgah Insurance, Standard Insurance, AtaInsurance, Xalq Insurance, PASHA Insurance, AXA MBASK, AzInsurance, AzerInsurance, Meqa Insurance, Silkway Insurance, Azerbaijan Senaye Insurance, Qala Insurance, Gunay Insurance).
The leading compulsory class is MTPL. In 2019 in Azerbaijan it is expected that GWP of MTPL may increase by 10-15%, according to ABBASBEYLI. "We do not think that MTPL will lose its leading position in Azerbaijan in 2019. This compulsory insurance type every year is expanding its penetration degree in the market", he said. In January-October 2018 MTPL GWP amounted to AZN 80.98 million (1.61% more y-o-y), paid claims amounted to about AZN 44 million (21.64% more y-o-y).
*EUR 1 = AZN 1.9281 (31.10.2018)