BAKU, Azerbaijan, January 26. Azerbaijan’s insurance sector continues to expand, with total insurance premiums collected by the country’s 16 insurance companies reaching 1.5 billion manat ($88 million) last year, said Vusal Gurbanov, Executive Director of the Central Bank of Azerbaijan (CBA), Trend reports.
Speaking during the presentation of the "InsurTech" teaching material, a project jointly prepared by the Center for Analysis of Economic Reforms and Communication (CAERC), the State Academy of Public Administration under the President of the Republic of Azerbaijan, and the Azerbaijan Insurers Association, Gurbanov noted that payments made by these companies amounted to 920 million manat ($541.1 million).
According to him, if with traditional rules hundreds, thousands of insurance events and probabilities were analyzed, with Big Data, this indicator is already in the millions.
"This implies higher involvement of technological tools in the
development of insurance, formation of insurance tariffs, insurance
coverage, and insurance provision. For the insurance sector,
InsurTech or technological innovations are a trend that is
consistent with the history of insurance," he explained.
The official emphasized that as these technologies develop, they
create great opportunities for insurers' valuation models.
"This is because analyses are mainly determined based on data.
At the same time, a competitive environment is being formed.
Technological tools are very important not only in valuation
models, but also in the implementation of insurance payments, which
are the main propaganda machine.
Currently, as throughout the world, our insurers are actively
participating in the application of these technological tools in
Azerbaijan, and the CBA pays special attention to the application
of insurance technologies within its strategic priorities. We
believe that ultimately, the application of such technological
tools will be beneficial for our country in terms of both
increasing the competitive environment and insurance coverage," he
added.