The international rating agency S&P Global Ratings has once again maintained its Insurance Industry and Country Risk Assessment (IICRA) for Azerbaijan's insurance sector unchanged, APA-Economics reports citing the international rating agency S&P Global Ratings.
According to the information, the last time S&P conducted a risk assessment for Azerbaijan's property and casualty (P/C) insurance sector was in its report published in April 2022. In that report, the country risk was assessed as "High", the sector risk as "Moderately High", and the overall IICRA assessment was determined to be "High". In other words, Azerbaijan's insurance sector was placed at the 5th level on a scale from 1 to 6. These assessments are associated with challenges in Azerbaijan's macroeconomic stability, exposure to high-risk assets, and limited availability of insurance products.
It should be noted that S&P's IICRA covers risk assessments for 96 insurance sectors in 47 countries and 4 global sectors. The IICRA evaluates the risks faced by insurance companies under two main categories. Country risk includes factors such as macroeconomic stability, political risks, legal and regulatory environment, currency stability, and the development level of capital markets. Industry risk evaluates factors such as the profitability of the insurance sector, the level of competition, product risks, market growth prospects, and the institutional framework.
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