Azerbaijan's Insurance Sector Premiums Grow 34% to $580M

Azerbaijan's insurance sector collected $580 million in premiums during 2025, representing 34% growth and indicating increasing financial protection awareness among individuals and businesses.

The Financial Market Supervisory Authority reports that mandatory insurance segments including motor vehicle liability and property insurance comprised 58% of total premiums, while voluntary health and life insurance grew 46%.

Digital insurance distribution platforms launched by five major insurers simplified policy purchasing processes. Online sales accounted for 28% of new policies, reducing distribution costs and improving customer accessibility.

Corporate insurance demand increased significantly, with businesses purchasing comprehensive coverage for property, liability, and employee benefits. Large infrastructure projects required specialized insurance products totaling $87 million in premiums.

International reinsurance partnerships strengthened local insurers' capacity to underwrite large risks. Lloyd's of London and Munich Re established representative offices in Baku, facilitating reinsurance arrangements.

Regulatory reforms implemented in 2024 enhanced consumer protection, standardized policy terms, and improved claims processing transparency. Average claims settlement times decreased from 45 to 18 days.