Azernews.Az

Azerbaijan`s insurance market has the potential to increase nearly five-fold to 1 billion manats (over $1.27 billion) within three to five years, a representative of US insurance brokerage firm Marsh has said.

``In one year, the insurance market of Azerbaijan could collect premiums worth over 1 billion manats,`` said Tural Gasimov, who coordinates business development at the company`s Azerbaijan office. ``The insurance market has been revitalized due to the introduction of compulsory insurance. This gave a real boost to the market and created an opportunity to enhance and realize its potential.``

Fees of insurance companies grew nearly 36.9 percent to 212.98 million manats (around $271.31 million) in 2011, and payments increased 14.38 percent to 61.57 million manats ($78.43 million).

The total premiums of all insurance companies operating in the country amounted to 81.6 million manats in the first quarter of 2012 (66.17 percent growth for the year) and payments amounted to 16.6 million manats in this period (an increase of 28.2 percent).

``The number of insurance claims will increase because the size of payments rose along with increased insurance premiums for compulsory insurance,`` Gasimov told the Baku-based Trend news agency. ``People will make claims more frequently and receive more payments.``

On December 16 Azerbaijani insurance companies started to enforce the new law On Mandatory Types of Insurance, which has four types - mandatory liability insurance for owners of motor vehicles, property insurance, liability insurance for real estate and insurance for passengers.