BAKU, Azerbaijan, June 24. New approaches to motor vehicle insurance (CASCO) will be introduced in Azerbaijan, First Deputy Chairman of the Central Bank of Azerbaijan Aliyar Mammadyarov said at the Azerbaijan International Insurance Forum in Baku, Trend’s correspondent reports from the event.
According to him, Azerbaijan’s insurance sector has made significant progress in recent years.
He noted that this development has been driven by the expansion of services offered by insurance companies, improved service quality, greater public awareness of insurance, and a series of structural reforms implemented by the Central Bank.
Mammadyarov said the Central Bank had approved a three-year Financial Sector Development Strategy, which places particular emphasis on strengthening the insurance market and ensuring its sustainability.
“The final year of the strategy’s implementation is now underway, and a number of important results have already been achieved,” he said.
The Central Bank official added that a new management model has been introduced in insurance companies, with a stronger role for board committees in corporate governance, increased participation of independent board members, and the establishment of internal control and risk management functions.
He said these changes have aligned the sector more closely with international best practices.
“Significant steps have also been taken to improve the quality and accessibility of insurance services.
Reforms in compulsory motor insurance have contributed to a more risk-based approach, improved driver discipline, and more efficient mechanisms for compensating losses related to harm to life, health, and property of third parties.
Cooperation between the banking and insurance sectors has also deepened.
To strengthen social protection for citizens with credit obligations, new life insurance mechanisms have begun to be introduced,” Mammadyarov said.
He also noted that digital transformation efforts have expanded the use of online insurance services, making contract signing and service delivery more flexible and convenient.
