By Mirsaid Ibrahimzade
The development of the insurance market depends on the income of the population and many experts note that the more knowledge people have about insurance market, the more interested they are in insuring themselves or property.
Azerbaijan takes measures to improve insurance market which includes an online system leading to the significant simplification of the work process for insured persons.
Net profit of the insurance sector of Azerbaijan in 2018 amounted to 105.68 million manats ($62.16 million) which is an increase of 58.8 percent compared to the indicator of 2017, a source in the financial market told local media.
Revenues of the insurance sector increased by 4.9 percent and reached 722.43 million manats ($424.96 million) in 2018.
Investment income amounted to 54.93 million manats ($32.31 million) (an increase of 14.5 percent) and the share of reinsurers in insurance premiums reached 14.18 million manats ($8.34 million) and made an increment of 1.8 percent.
Against the background of rising investments, work is underway to automate the regulation of relations in the insurance market. The online system contributes to effectiveness of the bonus-malus system.
Expenses of the insurance sector fell down by 1 percent - to 599.53 million manats ($352.66 million). Insurance payments amounted to 250.19 million manats ($147.17 million) (a decline of 7.3 percent), payments for reinsurance - 141.05 million manats ($82.97 million) (an increase of 26.6 percent), the cost of doing business - 175.81 million manats ($103.42 million) (10 percent growth).
Most of the insurance contracts were concluded in the field of compulsory insurance, which accounted for 58.5 percent of the total portfolio, or 1.51 million contracts. Last year, the number of compulsory insurance contracts increased by 10.8 percent.
Compulsory health insurance started as a pilot project which has been implemented in Azerbaijan since late 2016. It currently covers the city of Mingachevir and the Yevlakh and Aghdash regions. The project is being implemented by the State Agency on Mandatory Health Insurance, which began operating in February 2016.
The total premiums of insurers and reinsurers in Azerbaijan in 2018 amounted to 782.29 million manats ($460.17 million), which is 30.7 percent more than in 2017.
For compulsory insurance, premiums in 2018 amounted to 228.32 million manats ($134.3 million) (an increase of 5.9 percent).
The integration of the Compulsory Insurance Bureau (CIB) electronic information system with the system of the Ministry of Labor and Social Protection of the Population is carried out in electronic format in the sphere of issuing insurance policies for compulsory insurance against loss of working capacity due to industrial accidents and occupational diseases.
Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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