Insurance market to continue to grow in 2018
By Sara srafilbayova
The insurance market of Azerbaijan will continue its growth in 2018 as well.
Khayal Mammadkhanli, an insurance expert, chairman of the committee of insurance intermediaries of the Azerbaijan Insurers Association said that the results of the first half of 2018 for the insurance market of Azerbaijan are very interesting and very optimistic.
The expert noted that the truth is that the growth in compulsory types of insurance was not very significant, but it is encouraging that growth in most types of voluntary insurance has been observed, since the market of compulsory insurance is always limited.
“After saturation of the market, the growth rates of compulsory types of insurance always weaken and depend only on from increasing premiums, but voluntary types of insurance always have great prospects, and the fact that they demonstrate growth is a good indicator,” Mammadkhanli stressed.
In general, in his view, the growth of the insurance market in 2018, if not exceed last year’s figure, it will still be close to it.
“I believe that the market this year will be able to reach 600 million manats ($352.9 million), that is, if last year the fees on the market amounted to about 570 million manats ($335.3 million), this year the market will grow by another 30 million manats ($17.65 million),” the expert noted.
The expert noted that another interesting fact is the reduction of payments of insurance companies, which leads to an increase in the profitability of the sector.
Currently, 21 insurance companies are implementing their activities in Azerbaijan.
First top 5 of general insurance companies in January-June 2018 is as follows: AzerInsurance (34.91 million manats-$20.53 million), Ateshgah (19.69 million manats-$11.58 million), Mega Insurance (15.23 million manats-$8.96 million), AtaInsurance (10.35 million manats-$6.09 million).
In general, these eight companies had 343.58 million manats ($202.1 million) or 86.7 percent of all premiums of insurers for the reporting period.
Among the insurance companies in the first half of 2018, PASHA Life Insurance also made the largest payments, reimbursements of which amounted to 31.65 million manats ($18.61 million) or 26.5 percent of all payments of insurers.
PASHA Insurance became the leader in terms of payments in other types of insurance (25.46 million manats-$15 million). Among the five leading insurance companies in terms of the volume of refunds made in this segment, following the results of the reporting period also included: Ateshgah (9.66 million manats-$5.68 million), AzerInsurance (7.85 million manats-$4.62 million), AXA-Mbask (4.69 million manats-$2.76 million) and AzInsurance (4.17 million manats-$2.45 million).
In general, these 8 companies paid 102.68 million manats ($60.4 million) or 86.1 percent of all payments of insurers for the reporting period.
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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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