Finance is growing concentration in the insurance market

Chamber of supervision on financial markets published its first semi-annual report on the state of the insurance market of Azerbaijan. Despite a slight decrease in the number of players (from 28 to 25), from January to July was recorded an increase in premiums - total collected 285.3 million manat, which is 17.7%, or by 42.95 million more than in the first half of  last financial cycle.

It is noteworthy that risk management continues to be concentrated in the hands of the top five:  Pasha Sigorta 64,61 million manat, or 22.64% of the total, 45.03 million on account of Pasha Hayat Sigorta, state-owned commercial insurance company Azer Sigorta collected 32.7 AZN, Ateshgah - 21,33 million, and Ateshgah Hayat Sigorta - 19,96 million.That is, in the hands of the leading "stars" by July 1, focused 183.63 million manat, or 64.4% of the collected funds.

According to experts, alarming fact is  a huge concentration (almost a third) of funds of the  group of companies owned by Pasha Holding and licensed much later than many of the local insurers. So, they actually drove the position of voluntary health insurance from a specialized company A-Qroup, intercepting all corporate contracts, and this is not an isolated case of bringing the competition before the actual bankruptcy, when payments are from 80 to 120% of the premiums, which makes the very existence of unfavorable structure.

Fees for voluntary insurance totaled AZN 177.1 million (+ 15.54%), the payments -. 75.1 million (+ 4.93%). Life insurance companies received 81.93 million, forming 28.71% of total

premiums at 36.77 million manat of payments.

In total, during the reporting period, the company carried out the insurance premiums by 101.4 mln. AZN (+ 10.1% as of July 1 last year), that is, for every 100 AZN  were paid 35.5% (minus 2.5% by July 1, last year.) --17D-