Catastrophic Insurance Pool - a public-private partnership

It's time to expand the cooperation between public, private, foreign and international insurance and reinsurance companies. Such an opinion was expressed at the V Azerbaijan International Forum AIIF 2014 by ​​Jurgen Brooker, manager on clients of the world's largest reinsurance company Munich Re (Germany).

As it is noted in the publication of the Romanian virtual magazine XPRIMM Insurance Profile Azerbaijan, now Azerbaijan Insurers Association and the Ministry of Finance AR in partnership with leading international reinsurance companies are working to develop the country's catastrophic insurance pool. According to Brooker, a large part of the Azerbaijani population actually lives on the Absheron peninsula and partly by the River Kura and on the territories bordering the Caspian Sea. From this perspective, there is high possibility of insurance claims as a result of winds and floods. An effective step for better organization of insurance may be the creation of "insurance pool." This view is substantiated by positive examples of countries such as Germany, Turkey, Mexico and Chile.

According to the German analyst, to increase insurance penetration among the population in the long term, we should consider creating an insurance pool from the risks of natural disasters with the parallel operation of compulsory insurance of residential property against natural disasters. Such a mechanism of work provides the following scheme: the purchase by the population of compulsory insurance policies for real estate, insurance companies cover the risks of the owners from natural disasters, and the companies will transfer their risks accumulating in the pool.

Recall that in Azerbaijan there is so far no mandatory health insurance or compulsory agricultural insurance. Implementation of the law in this area is not perfect. The Germans proposed a new type of compulsory insurance that will have a prospect of extensive development. Success requires an educational program with an effective mechanism for the implementation of legislation. - 17D-

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