Aze.US
Azerbaijan’s insurance sector is projected to expand by at least 10 percent this year, according to Elmar Mirsalayev, Executive Director of the Azerbaijan Insurers Association.
Mirsalayev said the industry has demonstrated stable growth and resilience in recent years, a trend he expects to continue in the near term. Strategic policy documents approved by the country’s leadership – including the 2022–2026 Socio-Economic Development Strategy and the “Azerbaijan 2030: National Priorities for Socio-Economic Development” framework – set a minimum annual growth target of 10 percent for the insurance sector.
The industry has already exceeded this benchmark for five consecutive years, he noted, adding that ongoing reforms and improving operational capacity across insurers provide confidence that market expansion will persist in 2026.
Growth in the sector reflects not only rising premium volumes but also increasing public awareness of risk management, Mirsalayev said. More citizens are recognizing the role of insurance in protecting financial stability and mitigating unexpected losses.
“People are gradually accepting a simple reality – life is more secure with insurance,” he said, emphasizing that a strong insurance system supports a strong economy, which in turn contributes to Azerbaijan’s broader national development.
Premiums and payouts rising
In 2025, Azerbaijan’s 16 insurance companies collected a total of 1.504 billion manats in premiums, marking an 11.2 percent increase compared with 2024.
During the same period, insurers paid out 920.4 million manats in claims – a 22.3 percent annual rise, indicating both higher coverage utilization and expanding market activity.
For every 100 manats in premiums collected last year, 61.2 manats were returned to policyholders as payouts. A year earlier, that figure stood at 55.6 manats, highlighting a growing level of compensation within the system.