Fitch: Azerbaijan’s non-life insurance depends on tariffs

Further growth potential in Azerbaijan’s non-life insurance sector is strongly dependent on tariffs, which the government regulates, Report informs, citing Fitch Ratings.

According to the agency, 7% of the non-life premium growth recorded in the Azerbaijani non-life insurance sector in 2019, 5.1% was achieved in regulated compulsory insurance, including homeowners’ property insurance and motor third-party liability.

“Life insurance remained a small part of the Azerbaijani insurance sector, but it reported stronger growth from 2012 to 2018. However, since the exemption was reduced to 50% of the premium paid on 1 January 2019, the premiums in the life insurance sector have dropped . Nonetheless, the life sector has medium-term growth potential due to the low penetration, with the bancassurance products driving this growth,” the agency said.