Non-life insurances - Azerbaijan | Statista Market Forecast

The Non-life insurance market in Azerbaijan is expected to witness significant growth in the coming years.
By 2024, the market size, as measured by the gross written premium, is projected to reach US$1.29bn.
This indicates a positive trend in the insurance sector within the country.
Furthermore, the average spending per capita in the Non-life insurance market is estimated to be US$123.20 in 2024.
This suggests that individuals in Azerbaijan are increasingly recognizing the importance of insurance and are willing to invest in this sector.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate of 2.94% from 2024 to 2029.
This steady growth is expected to result in a market volume of US$1.49bn by 2029.
These figures highlight the potential for further expansion and development within the Non-life insurance market in Azerbaijan.
In comparison to other countries, the United States is projected to generate the highest gross written premium in 2024, amounting to US$2.5tn.
This indicates the dominance of the US market in terms of size and financial contribution to the global insurance industry.
Azerbaijan's non-life insurance market is experiencing rapid growth due to the country's expanding economy and increasing demand for property and casualty coverage.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

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

The Non-life insurances market in Azerbaijan is experiencing a significant growth trajectory.

Customer preferences: Customers in Azerbaijan are increasingly seeking non-life insurance products that offer comprehensive coverage and competitive pricing. They are also showing a preference for digital platforms that provide convenience and ease of access to insurance services.

Trends in the market: One noticeable trend in the Azerbaijani non-life insurance market is the increasing demand for property and motor insurance. As the economy grows, more individuals and businesses are looking to protect their assets against various risks. Additionally, there is a rising awareness among the population about the importance of having non-life insurance coverage, further driving the growth of the market.

Local special circumstances: Azerbaijan's strategic location as a gateway between Europe and Asia has contributed to the development of various industries in the country. This has led to an increased need for non-life insurance products to safeguard businesses operating in sectors such as transportation, construction, and energy. Moreover, the government's efforts to promote insurance awareness and regulations have created a conducive environment for the expansion of the non-life insurance market.

Underlying macroeconomic factors: The overall economic stability and growth in Azerbaijan have played a crucial role in the development of the non-life insurance market. As disposable incomes rise and the standard of living improves, individuals and businesses are more inclined to invest in insurance products to protect their assets and mitigate potential risks. Additionally, the government's focus on diversifying the economy and attracting foreign investments has further boosted the demand for non-life insurance services in the country.

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.