Problems and Prospects Azerbaijan Insurance Forum Chingiz Mekhtiyev General Information Establishment 28 May 1918 Independence 18 October 1991 Official Language ID: 375036
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Slide1
Azerbaijan Insurance Market:
Problems and Prospects
Azerbaijan Insurance ForumChingiz Mekhtiyev Slide2
General Information
Establishment: 28 May 1918
Independence: 18 October 1991
Official Language:
Azerbaijanian
Political system: Presidential
Republic Area: 86.6 ths. sq. km.Population: 9 millionCapital: BakuAutonomous Republic: NakhchivanCurrency: Manat *Slide3
Macroeconomic figures
2010
GDP growth rate 5 %GDP per capita ($) 5,697
Investments ($) 17.3
bln
FDI ($) 3.3
blnInflation 5.7 %Unemployment rate 6%Poverty level 9.1%Average monthly salary ($) 406
Source: Azerbaijan Export and Import Promotion FoundationSlide4
Economic Reforms
Methodology
T h e b i g g e s t
j u m p e v e r
r e c o r d e d b y
D o i n g
B u s i n e s sR e p o r t
The Doing Business project
provides objective measures of business regulations and
their enforcement across 183 economies and selected
cities at the subnational and regional level.Slide5
Country ratings
2010
Long term credit
rating: “BBB-” (Investment grade)
Short term credit rating: “F3”
UNDP Human
Development report - 69
WEF Global Competitiveness Report 2010-2011
– 57 among world and 1st among CIS countriesSlide6
Azerbaijan: Economy OverviewSlide7
Azerbaijan: OverviewSlide8
Economy / insurance industry after crisis
Economic growth slowdownSteep decrease in banking crediting operations(motor, property etc)Foreign trade operations decreased (cargo insurance)Big construction projects delayed (construction insurance)
Decrease in establishment of new businesses (entities)
Decrease in investment in economy
Low crude oil pricesSlide9
Crisis and Insurance Market of AzerbaijanSlide10
Minimum capital requirement (AZN)
Before crisis
Year End
Insurers
Reinsurers
2008
1 mln2 mln20092 mln4 mln20103,5 mln
7 mln2011
5
mln
10
mln
After crisis
Year EndInsurers
Reinsurers
2010
3
mln
6
mln
2011
4
mln
8
mln
2012
5
mln
10
mlnSlide11
Main Market PlayersSlide12
Market PlayersSlide13
Total Assets and Paid-up capitalSlide14
Insurance Premiums Slide15
2011 (4month) Premiums (
mln USD)
99,5
%
0,5
%
0,95
%
17,44
%
99,05
%
82,56
%Slide16
Voluntary and Compulsory Insurance
80
%
81
%
z
20
%
72%
28
%
19
%
8
,78% growth
8
7,29% growthSlide17
Insurance Premium structure, 2010Slide18
Premium concentration, 2010Slide19
Loss ratioSlide20
Reinsurance market (
mln USD)Slide21
Reinsurance premium, by countriesSlide22
2011-2012 market growth forecast Slide23
Recent year Industry Developments
New law on Insurance (2008)Increase in capital requirements for InsurersAdoption of “Compulsory PA and Professional Deceases Insurance” Law (December 2010)Adoption of law regarding exemption from income tax of Insurers for the purpose of capitalization stimulation for financial sector (2009)Elimination of restriction for foreign insurance companies in share capital participation of insurance companies (2008)
Adoption of Standard Motor Insurance Conditions for the whole Market (2011)
Adoption of new law on compulsory insurance (which includes compulsory property insurance, passenger insurance, Motor TPL, Property TPL ) (2011)Slide24
Perspectives
Development of life insurance
Development of compulsory insurance systemImprovement of insurance culture Increase in capitalization of insurance companiesSlide25
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