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Pessimistic forecast: Small insurers` work to observe reduction in Azerbaijan

03.07.2020,12:31


July 3, Fineko/abc.az. International rating agency Fitch reported that the growth of the insurance sector in Azerbaijan depends on tariffs regulated by the government.

ABC.AZ informs with reference to news agency APA that life insurance makes up a small part of the country's insurance sector and, due to its moderate access to the economy (insurance penetration rate), has the potential for medium-term growth.

The Agency's report says that the concentration of the insurance sector in Azerbaijan is at a high level, and this is due to the fact that there are few companies in the sector and several companies have a large market share. Fitch expects that increasing concentration and shrinking segments in the sector will lead to job cuts and limited market access for small insurance companies.