BAKU, Azerbaijan, May 31. The insurance market of Azerbaijan could really benefit from better trust from population, as well as stronger insurance matters knowledge, insurance sector analyst Kamran Babayev told Trend.
"To solve these problems, it is necessary to take steps to improve the insurance literacy of the population and ensure the fulfillment of obligations by insurance companies. One of the key areas where these problems are clearly manifested is property insurance," Babayev said.
According to him, despite the mandatory nature of apartment insurance, the share of this type of insurance remains low.
"Many people don't insure their apartments, or do so only to avoid fines," he explained.
The expert noted importance of realizing that the cost of insurance for a year is only 50 manat ($29.4), in return, customers receive annual insurance protection for their property.
“However, due to the low level of insurance culture and the lack of proper information people insure their property, not realizing potential financial risks," Babayev said.
Raising the level of awareness and insurance culture among the population should be a priority for both insurance companies and government agencies, he said. This will allow the population to realize the real benefits of insurance, protect themselves from possible financial losses and contribute to the development of the insurance industry in Azerbaijan.
Besides, he emphasized that the need for an integrated approach to solving problems in the country's insurance market is recognized by both experts and representatives of insurance companies.
Fees on the compulsory non-life insurance market of Azerbaijan amounted to 168.85 million manat ($99.3 million), accounting for 17.39 percent of all insurance market fees in 2022.
Last year, real estate insurance fees reached nearly 53.97 million manat ($31.75 million) in the reporting period, down by 13.64 percent compared to 2021.
The premium paid for this type of insurance amounted to 25,000 manat ($14,706) in Baku, 20,000 manat ($11,765) in Ganja, Sumgayit and Nakhchivan, and 15,000 manat ($8,823) in other districts.
Meanwhile, the collected premiums for civil liability insurance for vehicle owners settled at 113.8 million manat ($66.9 million), having increased by 14.34 percent year over year.
