BAKU, Azerbaijan, Feb. 24
By Yusif Aghayev - Trend:
As international practice shows, when compulsory types of insurance are actively developing, voluntary ones also start to develop, Azer Aliyev, chairman of the Azerbaijan Insurers Association (AIA), told reporters, Trend reports.
Special attention should be paid to the development of compulsory types of insurance, Aliyev noted. There is considerable potential for this in Azerbaijan, the chairman added. There is a necessary legislative base, and certain technical capabilities have been created, said Aliyev.
“In this direction, a lot depends on the Compulsory Insurance Bureau,” Aliyev added. “It is no secret that the Bureau is carrying out considerable work to improve the compulsory insurance system in the country, and the digitalization of processes in this area holds a special place there. In Azerbaijan, for the first time in the CIS, compulsory liability insurance of vehicle owners began to be carried out in electronic form, appeals by vehicle owners and concluding insurance contracts are made online, without the use of paper workflow.”
This became possible due to the integration of the database of the Compulsory Insurance Bureau on liability insurance of vehicle owners and the electronic system of Azerbaijan’s Interior Ministry, the chairman added.
“Most recently, the transition to electronic format was carried out, without paperwork, in the field of insurance against industrial accidents and occupational diseases,” said Aliyev. “The work is underway in the field of digitalization of compulsory real estate insurance, within the framework of which it is necessary to integrate the database of the compulsory insurance bureau for real estate insurance and the electronic system of the State Real Estate Registry. This is also expected to be implemented this year.”
“In addition to the above mentioned, there is ongoing activity in the field of increasing the efficiency of the electronic system for recording insurance cases for compulsory liability insurance of vehicle owners, which allows more clearly and efficiently calculating the bonus-malus coefficient used in this type of insurance,” the chairman added.
The AIA was established in 2006 as a voluntary association of professional participants in the insurance services market. AIA includes 20 insurance companies, one reinsurance company and five insurance agencies.
Azer Aliyev was appointed chairman of the AIA board on Jan. 21, 2019. Azer Aliyev is also the chairman of the board of Ateshgah Sigorta insurance company.
Azerbaijan’s insurance companies collected insurance premiums in the amount of 681.1 million manat ($400.6 million) in 2019, which is 46.7 million manat ($27.4 million), or 6.4 percent less compared to 2018. At the same time, Azerbaijani insurance companies paid insurance indemnities worth 301.5 million manat ($177.3 million) in 2019, which is 61.2 million manat ($36 million) or 25.4 percent more than in 2018.
Presently, 22 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on Feb. 24)