BAKU, Azerbaijan, December 26. Azerbaijan’s insurance sector continues to grow, with the total volume of insurance reaching around 1.5 billion manat ($88 million), said Vusal Gasimli, Executive Director of the Center for Analysis of Economic Reforms and Communication (CAERC), Trend reports.
Gasimli noted this during the presentation of the "InsurTech" teaching material, a project prepared jointly by CAERC, the State Academy of Public Administration under the president of the Republic of Azerbaijan, and the Azerbaijan Insurers Association.
"For every 10 manat ($5.88) of compulsory insurance premiums, approximately 6 manat ($3.53) are paid out, highlighting a trend of increasing payouts. Beyond the overall growth of the insurance market, three key areas stand out: market regulation, business models, and technology.
The 'InsurTech' textbook addresses all three in depth, highlighting how technology is reshaping the sector. The data shows that InsurTech is expanding at a remarkable pace, with the market reaching $20 billion last year alone and experiencing an estimated annual growth rate of 25-55%. According to international forecasts, the InsurTech market could soar to $250 billion by 2030," he said.
Azerbaijan's InsurTech sector is advancing through initiatives led by the Central Bank of Azerbaijan (CBA) and the Azerbaijan Insurers Association, focusing on digitalizing the insurance market via AI and automation. Key areas of emphasis include enhancing both compulsory and voluntary insurance products, expanding digital sales channels, and improving agricultural insurance. Strategic partnerships with Türkiye and other Turkic states are crucial for technology exchange. Additionally, educational initiatives like the creation of an "InsurTech" textbook aim to facilitate the industry's digital transformation.
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