AZERBAIJAN: the insurance market in 2018 may reach AZN 600 million
MAMEDHANLI believes that the result of the first half year is fairly optimistic for the local market and even if the market does not exceed last year's figure, it may reach the same level. Besides, the market shows a declining trend in paid claims, which means improvement in the sector' profitability.
Although 'mandatory types' growth was not so significant, many voluntary classes demonstrated a rapid increase. It means that the mandatory insurance market is always very limited. After this segment's saturation, growth rates of mandatory classes usually weaken and depend only on increasing insurance tariffs. But voluntary types always have huge perspectives, and their up trend is a good signal", said MAMEDHANLI. "This trend is very positive for the market. Reduction of paid claims is no way a consequence of the fact that companies refuse to pay their clients. The thing is that total number of insurance events and loss ratio are dropping. Such a trend in the future will let insurers get more profit, invest more funds and expand, as well as introduce new products," added the expert.
The Azeri market is represented by 21 insurance companies. In the first half year local insurers generated AZN 396.37 million of GWP (+43.5%). 1H 2018 paid claims amounted to AZN 119.3 million (+4.1%), of which the share of voluntary classes reached 72.4% of total GWP and mandatory types produced 27.6%. In the paid claims' portfolio, voluntary insurance accounts for 73%, and mandatory accordingly 27% of total market paid claims. In 2017, the Azeri market increased by 15% and GWP exceeded AZN 500 million for the first time, wrote the Trend News Agency of Azerbaijan.
*EUR 1 = AZN 2.0431 (as of 01.01.2018)
**EUR 1 = AZN 1.9814 (as of 30.06.2018)