07-02-2026
The "Strategy for Socio-Economic Development for 2022-2026," implemented on a systemic basis in our country, along with the "National Priorities for 2030" established against the backdrop of fundamental global challenges, serves as the primary guarantor of resilience and sustainable development in the medium and long term. Economic growth, preservation of financial stability, and the assurance of social welfare constitute the core parameters of our country’s citizen-oriented socio-economic initiatives.
These development indicators are equally reflected in the local insurance sector. For the fifth consecutive year, the domestic insurance market has maintained a trend of stable growth. We discussed the current state of the domestic insurance market in detail with Elmar Mirsalayev, Executive Director of the Azerbaijan Insurers Association and co-founder of the Turkic World Insurance Union.
– The final insurance review for 2025 has been released. How did Azerbaijan's insurance market grow during this period, and in which areas was development most prominent?
– I would like to state that the development and overall market growth in our local insurance sector continued as a recorded trend in 2025. Based on the 2025 final insurance review published by the Central Bank of the Republic of Azerbaijan, the Azerbaijani insurance market grew by 11.2%, generating 1 billion 504 million AZN in insurance premiums. Interestingly, a parallel increase was observed in insurance payouts. In 2025, a total of 920.3 million AZN was paid out for insurance claims, marking a 22.3% increase compared to the results of 2024.
Analyzing the dynamics by insurance classes, we see that premiums in life insurance rose by 16.2% (with a 3% increase in payouts), while non-life insurance premiums grew by 5.3% (with a 3% increase in payouts). This indicates that all insurance classes contributed comprehensively to the overall market expansion.
Among the insurance types playing an active role in sectoral growth, we can highlight: Life Endowment Insurance (701 million AZN in collections), Compulsory Third-Party Liability (CTPL) Insurance for motor vehicle owners (182.1 million AZN), Voluntary Medical Insurance (133 million AZN), Compulsory Insurance against industrial accidents and occupational diseases (101.5 million AZN), Property Insurance against fire and other risks (85.5 million AZN), Compulsory Real Estate Insurance (80.8 million AZN), CASCO (78.6 million AZN), and Agricultural Crop Insurance (12.8 million AZN).
Consequently, the overall market growth has positively impacted the share of insurance premiums in the GDP. Considering the GDP production and total premium volume for 2025, the insurance sector's share in GDP rose from 1.07% to 1.16%, while its share in the non-oil/gas GDP increased from 1.58% to 1.63%.
I would specifically like to emphasize that this dynamic growth is a clear indicator of the nation-wide strategic development policy implemented by the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, as well as the effective supervisory and regulatory mission successfully executed by the Central Bank of Azerbaijan.
– Alongside premium collections, there has been an increase in insurance payouts. What does the intensity of insurance events last year indicate?
– Insurance activity is fundamentally linked to accidents and the probability of loss. This reality was once again evident in the events of the past year. I would like to address the intensity of events with three real-world facts. For instance, due to the freezing and snowy weather recorded between February 21 and March 2, 2025, insurance companies received 4,414 claims, resulting in 2 million 708 thousand AZN in payouts.
Furthermore, during the holiday period of March 20-31, 2025, insurance companies received 2,634 claims, leading to 2 million 550 thousand AZN in payouts. Another fact: on March 15-16, 2025, over just two days of heavy rainfall, 769 damage cases were recorded, with nearly 300 thousand AZN in insurance payments.
Unfortunately, incidents continue this year as well. During the New Year holidays (Dec 31, 2025 – Jan 4, 2026), 2,156 citizens suffered losses, receiving a total of nearly 1.5 million AZN in compensation. On January 20, 2026, due to snowy weather, 484 insurance cases were recorded in a single day, with payouts reaching nearly 300 thousand AZN. These figures demonstrate that risks are unpredictable, and citizens can only secure their financial stability through insurance services.
– Awareness is a primary direction in any field. What steps is the insurance sector taking regarding public awareness?
– In an era of rapidly evolving financial services, financial literacy—especially regarding insurance as a socio-economic protection mechanism—is a perennially relevant topic. In 2020, a Memorandum of Cooperation was signed between the Central Bank of Azerbaijan, the Azerbaijan Insurers Association, and the Compulsory Insurance Bureau. For six years, large-scale awareness campaigns have been conducted, including media projects, writing competitions for journalists, and public advocacy.
Looking back at this five-year period, we can see the successful results. The market grew by 16% in 2021, 18% in 2022, 26% in 2023, 11% in 2024, and 11% in 2025. These measures foster risk awareness and increase the accessibility of insurance.
– How is international experience integrated? What are the updates in international cooperation?
– 2025 was particularly significant for the first Assembly of the "Turkic World Insurance Union" held in Shusha, Azerbaijan. The assembly featured regulators and associations from Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, Uzbekistan, and the TRNC. A "Proclamation Document" was signed, and countries like Hungary and Turkmenistan joined as observers. The next assembly is scheduled for 2026 in Turkey.
– What are the market projections for 2026?
– The "Social-Economic Development Strategy for 2022-2026" sets a minimum growth target of 10% for the insurance sector. I am proud to say that we have exceeded this target for five consecutive years. Based on ongoing reforms, I can confidently state that market growth will continue in 2026, with an expected growth rate of at least 10%. Strong insurance means a strong economy, and a strong economy means a strong Azerbaijan.
