Insurance market sees 14 pct growth
By Nigar Abbasova
Insurance companies of Azerbaijan collected some 356.18 million manats ($ 217.58 million) in January to August 2016, recording a growth of 13.84 percent as compared to the index fixed in the same period of 2015, the Financial Market Supervisory Body (FMSB) reported.
The volume of insurance payments carried out via 25 insurance companies, currently operating in the country amounted to 136.77 million manats ($83.54 million), while the growth stood at 17.3 percent.
The agency reported that a positive dynamics was also observed in the payments made in the sphere of voluntary and compulsory types of insurance.
Collections in the sphere of voluntary insurance have increased by 16.75 percent, while payments amounted to 14.5 percent to stand at 226.57 ($138.40) and 100.19 million manats ($61.20 million) respectively.
The volume of collections has also increased in the market of compulsory insurance facing a growth of 9.1 percent to stand at 129.6 million manats ($79.16 million). Payments were 27.6 percent up and stood at 36.57 million manats ($ 22.33 million). Insurance companies of Azerbaijan offer a wide range of services including corporate insurance, individual insurance and reinsurance.
The number of member-companies of the Compulsory Insurance Bureau currently amounts to 16 with 13 of them being eligible for rendering services on compulsory real property insurance and third party car insurance and 12 having a right to provide compulsory third party liability insurance associated with the use of the real property.
Life insurance occupies a special place in the insurance market. Today this segment is considered to be one of the most popular ones in Western Europe and other countries with developed insurance markets. Life insurance market in the country appeared in 2011. Only specialized companies can offer life insurance in Azerbaijan, according to the domestic legislation. Currently three insurance companies including PASHA Life, Ateshgah Life and Qala Life have licenses to provide life insurance services.
Head of FMSB, Rufat Aslanli earlier said that the processes occurred in the world economy have negatively influenced the insurance market of Azerbaijan and the country faced a decrease in demand in the sphere of insurance services adding that main objectives of the authority are adaptation of the insurance market to the processes, as well as increase of stability within a short period of time..
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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