Insurances

The Insurances market in Azerbaijan is projected to reach a market size (gross written premium) of US$2.77bn in 2024.
Life insurances dominate the market with a projected market volume of US$1.48bn in 2024.
The average spending per capita in the Insurances market amounts to US$265.10 in 2024.
When comparing globally, the United States is expected to have the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 3.36%, resulting in a market volume of US$3.27bn by 2029.
In global comparison, the United States will generate the most gross written premium, reaching US$3.8tn in 2024.
The insurance market in Azerbaijan is experiencing a growing demand for life and health insurance products.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The insurance market in Azerbaijan has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Azerbaijan are shifting towards more comprehensive coverage options, driven by increasing awareness of the importance of insurance protection. Customers are seeking policies that offer a wide range of benefits and coverage, including health, life, property, and auto insurance. Trends in the market indicate a growing demand for digital insurance solutions, with an increasing number of insurance companies in Azerbaijan offering online platforms for policy purchases and claims processing. This trend is in line with global developments in the insurance industry, where digitalization is playing a key role in enhancing customer experience and operational efficiency. Local special circumstances, such as regulatory reforms and government initiatives to promote insurance penetration, are also contributing to the growth of the insurance market in Azerbaijan. The government's efforts to improve the regulatory framework and increase public awareness about the benefits of insurance are creating a more favorable environment for insurance companies to expand their operations in the country. Underlying macroeconomic factors, including steady economic growth and rising disposable incomes, are supporting the development of the insurance market in Azerbaijan. As the country's economy continues to grow, more individuals and businesses are looking to protect their assets and mitigate risks through insurance coverage, driving the overall expansion of the market. Overall, the insurance market in Azerbaijan is poised for further growth and innovation, driven by changing customer preferences, technological advancements, supportive regulatory environment, and favorable macroeconomic conditions.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.