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Fitch: Non-life insurance in Azerbaijan collapsed

23 June 2016 10:38 (UTC +04:00)

Baku. Yegane Lachinzade - APA-Economics. Premiums on life insurance in Azerbaijan are higher than CIS countries, Anastasia Litvinova, director at Fitch Rating on CIS countries said at the seventh Azerbaijan International Insurance Forum (AIIF -2016).

“However, the non-life insurance has collapsed since 2005. We see the capital concentration is high at the market. There are some market participants. Two-year revenues from this sector were lower than Russian and Kazakh market. As many countries, Azerbaijan also suffered from devaluation”, she added.

Litvinova also noted that the underwriting in Azerbaijan is in the bad condition: “This does not create appropriate condition for investments. Main success in this sector is in life insurance. Non-life insurance suffered from devaluation. Insurance sectr depends on banking sector. Number of participants on underwriting in compulsory is limited. Main problem of the sector is related to absence of normal underwriting”.