Intensive Development of Compulsory Insurance

From January to November 1, the participants of the local insurance market collected total 356 million AZN, including 229.5 million or 64.5% collected in the framework of voluntary insurance. These items, though lead in absolute terms, lag behind in terms of growth - in comparison with the same period last year they rose by 2.8%, while the mandatory types - by 10.5%.

According to Azerbaijan Insurers Association (AIA), the share of premiums for compulsory insurance is 34.5% a year earlier it was 28%, on November 1, 2012 - 20%, and even less a little earlier. According to figures from the State Insurance Supervision Service under the Ministry of Finance, compulsory insurance is at the expense of developing the segment of life insurance and a new vision of the civil liability of owners of vehicles to third parties. Part of the contribution is made by the commercial state insurance company with compulsory insurance of military and law enforcement personnel.

On payments (126.5 million manat) the lead also belongs to voluntary types - 73.6% of the volume, or 96.8 million manat. In terms of growth, they also exceed mandatory types - 40.8% compared to the binding items (+ 14.6%, or 34.6 million manat). Most payments rose in life insurance - 7.6 times per year - to 25.5 mln. AZN. --17D-