By Azernews

By Nigar Abbasova

The insurance market of Azerbaijan recorded a growth of more than 10 percent in January – October 2016.

The Financial Market Supervisory Body (FMSB) reported that insurance companies, currently operating in the country collected some 420 million manats ($ 245.7 million), which is 11 percent higher than in the same period of 2015. The insurance premiums increased by 36 percent and hit 191 million manats ($ 111.7 million).

The collections on voluntary insurance increased by 15 percent to hit 272.2 million manats ($ 159.2 million), while payments on the voluntary insurance rose by 38 percent to stand at 143.68 million manats ($ 84.06 million).

The collections on compulsory insurance amounted to 148 million manats ($ 86.59 million), recording a 4 percent increase, while payments stood at 47 million manats ($ 27.4), facing a growth of some 30-percent increase.

The 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.

The market is currently dealing with a certain number of tasks, including compulsory medical insurance and agrarian insurance.

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.

Agrarian insurance also represents a very perspective and profitable sphere. The insurance allows entrepreneurs to protect themselves against either the loss of their crops due to natural disasters, or the loss of revenue due to declines in the prices of agricultural commodities.

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