Development of insurance market in focus of gov’t

24 June 2016 13:32 (UTC+04:00)

By Nigar Abbasova

Azerbaijan should increase the volume of the insurance market.

Ziyad Samedzade, Chairman of the parliamentary commission on economic policy, industry and entrepreneurship said while addressing the Azerbaijan International Insurance Forum (AIIF – 2016) on June 23.

The growth rates of the insurance market in recent years were higher than the country’s rates of GDP growth, according to him. “The country’s insurance market continues to develop and assets of insurance companies are increasing despite the influence of global economic processes on the economy of Azerbaijan. We should continue to develop the insurance market. Our main objective is to reach the level of 3 percent in the rates of the country’s insurance market volumes,” he said.

He further mentioned that the market is currently dealing with a certain number of relevant tasks, including compulsory medical insurance and agrarian insurance.

“We should continue our work on the introduction of the compulsory medical insurance. We should also keep in mind that as much as 15 percent of the insurance products are formed by means of medical insurance. Agrarian insurance also represents a very perspective and profitable sphere. The government supports the development of the agrarian-industrial complex. One of the main objectives is increase of the export volumes of locally manufactured agricultural production. In this regards the production should possess a high level of competitiveness,” he said, noting the importance of the food security provision.

Samedzade went on to say that global risks, which influence Azerbaijan, necessitate the increase of the insurance conception in the country.

Experts believe that the current absence of mandatory health insurance does not allow health care to reach a new level of quality. Among the main advantages of the system are raising people’s access to health care services and prevention of unofficial payments within the system.

Currently, 25 insurance and one re-insurance company operate in Azerbaijan.

The volume of insurance payments carried out via 25 insurance companies in the country amounted to 76.3 million manats ($ 49.8 million) in January 2016, according to Azerbaijan Insurers Association. The volume is 21.3 percent higher than the rate shown in the same period of 2015.

The amount of payments carried out by insurance companies were at the level of approximately 13.4 million manats ($ 8.7 million), which is 29.4 percent higher as compared to the rates of January 2015.

Azerbaijan International Insurance Forum that brought together more than 200 participants from over 20 countries was focused on the on actual topics for Azerbaijan`s and regional insurance market. The event covered issues of agricultural insurance, international practice and models in this sphere, adequate assessment of risks, automobile insurance, tariff and systems for assessment of damages in this field, as well as electronization of processes.


Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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