AZERBAIJAN: local insurance market following the results of VI Insurance conference
"For five months premiums amounted to AZN 352 million, which means 47% annual growth. 73% of premiums were generated by voluntary classes and 27% by compulsory ones", said ALYSHOV.
Based on the data of the Financial Market Supervisory Authority, assets of the Azeri insurance sector exceed AZN 1.1 billion. "Insurance penetration degree in financial market is 2%, and until 2020 this figure will reach 8%. We'll create 1600 new working places in the insurance sector", added ALYSHOV.
Also, at the VI Insurance conference Associate director of the International rating agency Standard & Poor's Ekaterina TOLSTOVA noticed among the features of the Azeri insurance market that the majority of insurers in the country are owned by banks, and that directly affects the insurance market's condition. "Banking problems related to depreciation influenced the insurance. In 2013-2017 Azeri insurance income in USD decreased by 37% and in local currency jumped by 37%, which is mainly due to the local currency's position", explained TOLSTOVA.
Among the local insurance market's trends and perspectives ALYSHOV pointed the planned introduction of four new insurance products in strategic business lines. "The strategic business lines are microinsurance, joint insurance, mandatory medical insurance and agroinsurance. The Financial Market Supervisory Authority already analyzed the market and took appropriate measures in various segments, the work is being carried out mainly in agroinsurance, which is an integral part of the economy and, in particular, of the non-oil industry. A draft of the relevant legislation has been already submitted to the government", explained ALYSHOV.
VI Insurance conference took place in Baku, on 20-21 June, under the titles "Insurance in Azerbaijan: New perspectives", organized by XPRIMM and Azerbaijan Insurers Association, with the official support of the Financial Market Supervisory Authority of Azerbaijan.