Over 200 professionals from 20 countries (among them: Azerbaijan, UK, Russia, Turkey, Poland, Check Republic, Georgia, Iran, Germany, Dubai, Kazakhstan, Albania, Ukraine, Israel, Cyprus, Romania, Latvia, Spain etc.), representing insurance, reinsurance companies, brokers, IT, consultancy, banks, audit, professional associations and supervisory authorities have attended the conference works, participating in a lively know how exchange.
The two days event's sessions focused on the latest trends in the Azeri insurance market, its future development strategy and perspectives, as well as on potential drivers of the market modernization. Agricultural insurance, a top priority on the Azeri agenda, was the main topic of the second day, gathering contributions from the Turkish and Russian national specialty pools, specialized reinsurers, brokers, renewed specialists and technology providers. The second day's morning has also hosted a specialized workshop offered by Aon, dedicated to catastrophe modeling.
Here are the main conclusions of the conference:
- In the "Roadmap for the development of the financial markets in Azerbaijan", a document adopted in 2017 outlining key reforms for the national economy and 11 of its priority sectors to ensure resilience and to accelerate the diversification, special attention was paid to increasing the insurance market's volume and penetration in GDP; microinsurance, medical insurance, health insurance and agricultural insurance are the four development pillars taken into consideration;
- Products diversification, consumer protection, technological modernization as well as increasing the market stability and financial literacy of the Azeri population are among the top priorities for the market authority in the following years;
- The market is likely to benefit from improvements in macroeconomic conditions but will probably remain highly concentrate on Top 5 players. The markets' growth is like to be higher for life insurance rather than P/C. Yet, non-life sector underwriting expertise would benefit from stronger competition. Penetration in retail lines might increase if pricing and claims management in compulsory lines becomes more flexible. Also, life insurance growth might turn out to be unsustainable if tax incentives are removed at any point in time in the future; voluntary health insurance will remain a major personal line.
- Catastrophic losses to property and agriculture are lately becoming more visible, a trend attributable in many respects to climate change; Index insurance may be a good solution to problems of property insurance, especially for drought in agricultural insurance and the flood and earthquake risks in property; Microinsurance may also have a significant role to play in property and agricultural insurance;
- Azerbaijan's target is to establish effective, flexible, durable and reliable agricultural insurance system in the country; developing agricultural insurance in Azerbaijan will support production increase and consequently economic growth, especially on the non-oil segment, increasing food security and improving farmers' standard of living;
- The system in preparation for the agricultural insurance in Azerbaijan will introduce a series of novelties: it will operate as a PPP, with an agricultural insurance pool inspired by the Turkish TARSIM, operated by a private company, highly technologized and using professional services of a network of loss adjusters.
Partners of the event:
- General Partner: AZ Re
- Official Partners: AON, ATESHGAH Insurance and Trust Re
- Partners: AzSigorta, AUDATEX
Full list of speakers, presentations and photo gallery of the event available on the official website: www.xprimmevents.com