The Motor Insurance Development Tendency in Azerbaijan Romania, 2012 Azer A.Aliyev Executive director
CONTENT: About Azerbaijan Azerbaijan Insurance market overview Insurance Legislation Motor Insurance Compulsory Insurance Bureau Existing problems
GENERAL INFORMATION Establishment: 28 May 1918 Currency: Manat Independence: 18 October 1991 Capital: Baku Official Language: Azerbaijanian Population: 9 million Area: 86.6 ths. sq. km. Political system: Presidential Republic
MACROECONOMIC FIGURES 63 402.5 mln $ GDP 2011 7 003.4 $ GDP per Capita Azerbaijan 21 666.7 mln $ Investments 5.5% Unemployment Rate 7.9% Inflation
COUNTRY RATINGS
GDP PER CAPITA & INFLATION RATE (mln USD) 2 471,6 3 841,7 16,7% 5 603,3 20,8% 5 018,2 5 922,0 7 003,4 8,3% 2006 2007 2008 1,5% 2009 2010 5,7% 7,9% 2011
MARKET PLAYERS Insurance Non Life Companies Insurance Brokers Insurance Life Companies Reinsurance Companies 71 38 29 30 29 27 25 23 5 5 2 2 7 6 6 6 1 3 3 1 1 1 1 1995 2001 2003 2005 2007 2009 2011 April 2012
MAIN MARKET PLAYERS 2 representatives of foreign IC 6 Brokers AZERBAYCAN INSURANCE MARKET 23 Non-life companies 1 Reinsurance company 3 life insurance companies
INSURANCE PREMIUMS (mln USD) 188 68% 227 207 197 270 112 37% 15% 21% 2006 2007 2008 Premium growth (%) 2009-9% 2010-5% 2011 The main reasons for 72.8 mln $ (37%) premiums increase in 2011 are: - life 25.8 mln $ - auto 10.6 mln $ - medical 6.4 mln $ - others 30 mln $
STRUCTURE OF INSURANCE PREMIUMS (mln USD) 1,1 (0,5%) 1,8 (0,9%) 28,6 (10,6%) 206 (99,5%) 195 241 (99,1%) (89,4%) 2009 2010 2011 Non-Life Life
VOLUNTARY AND COMPULSORY INSURANCE (MLN USD) 66 (24%) 38 (18%) 40 (20%) 169 (82%) 158 204 (80%) (76%) 2009 2010 Voluntary insurance 2011 Compulsory insurance
INSURANCE PREMIUM STRUCTURE, 2011 Motor (56,9 Mln $) 6% 6% 1% 14% 21% 15% Compulsory (40,6 Mln $) Property (37,7 Mln $) Medical (36 Mln $) Life (27,6 Mln $) 10% Liability (16,4 Mln $) 13% 14% Cargo (16,2 Mln $) Motor 3d party Liability (1,4 Mln $) Other (37,1 Mln $) TOTAL 270 Mln $
INSURANCE PREMIUM STRUCTURE, 2011 100% 47% 71% 88% Total premium TOP 5 TOP 10 TOP 15
INSURANCE LEGISLATION Main laws that affected the development of Azerbaijan insurance market: Insurance Activity Law, that was adopted on 2008 Compulsory Accident at Work Law, adopted on 2010 Compulsory Insurance Law, adopted on 2011 compulsory real property insurance compulsory 3d party liability insurance in motor vehicles compulsory 3d party liability insurance with use of real property compulsory personal accident insurance of passengers
$ mln. MOTOR INSURANCE (VOLUNTARY CAR INSURANCE) 21 19 20 40 46 57 2009 2010 Premiums gathered 2011 Claims paid
$ mln. MOTOR INSURANCE (3D PARTY LIABILITY IN MOTOR VEHICLES) 0,33 0,12 0,34 1,36 1,39 1,37 2009 2010 Premiums gathered 2011 Claims paid Only during January April 2012 the market gathered 25.42 mln $ on this type of insurance
COMPULSORY INSURANCE BUREAU Compulsory Insurance Bureau Created organized by Insurance regulator and Insurance companies New legislation in force, regulating MTPL product and administration All participants must use central IT system for Policy issue process and Claims data submission From 2013 Bonus-Malus system will start to work
COMPULSORY INSURANCE BUREAU Online system, all policies are issued from central system in REAL-TIME! Insurance companies can use web interface or integrate with Compulsory Insurance Bureau system Public Services possibility to check policy via web page or sms Integrations with state registers in process Plan to add all mandatory insurance products in system
EXISTING PROBLEMS YOUR TEXT HERE Luck of experience working on retail market (absence of the extensive agent network, weak insurance propaganda among population) YOUR TEXT HERE Luck of a single strategy directed to the popularization of the obligatory and voluntary insurance between all market players, both government and commercial organizations? YOUR TEXT HERE Luck of professional insurance education YOUR TEXT HERE Luck of a long-term development strategies inside the companies
The 3-d Azerbaijan International Insurance Forum organizers Azerbaijan Insurers Association with the support of the State Insurance Supervision Service under the Ministry of Finance of the Republic of Azerbaijan and Media XPRIMM Romanian PR company. The main theme of the Forum is: Trends and prospects on the insurance market of the Caucasus Region. Investment and reinsurance opportunities. Expected number of guests at the Forum about 200. The 3-d Azerbaijan International Insurance Forum will be held 4-5 July 2012 in Jumeirah Bilgah Beach Hotel in Baku
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