The Bureau of Compulsory Insurance (BCI) in the framework of compulsory insurance of real estate collected a total of 21,493,860 manats by October 1 (+ 73.9% in the first three quarters of last year). The activity is linked to the increasing incidence of natural disasters like the earthquake in the north-western region of Azerbaijan.
The information on the BCI site noted that all insurers in this segment concluded 83,406 contracts (minus 31.6%). The discrepancy between the amount of the increase and decrease in the number of policies sold is due to the priority of insurance of property in the capital, whose rates are higher than in the regions.
Compulsory insurance of real estate applies to all types of buildings, including houses and apartments belonging to individuals, offices, legal entities, and state property.
The maximum amount of compensation for an insured event in the country is legislated for Baku - 25,000 manats, in Ganja, Sumgayit and Nakhchivan - 20,000 manats, and in other towns - 15,000 manats. The insurance rate for this type of insurance is 0.2% of the specified amount.
Recent cases of the earthquake in Sheki and surrounding areas indicate that insurers use legal and other levers, trying not to pay the full amount to cover losses of property owners, but only part of it.
The licenses for the provision of compulsory insurance of property belong to 12 of the 15 members of the BCI. --17D-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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