Azerbaijan Life Insurance market:
trends and perspectives
Baku, Azerbaijan
July 02, 2015
Life Insurance in Azerbaijan
• Market Share by GWP for the period 2011 - 2014
2011
2012
Gala Life
21%
Pasha Life
40%
Pasha Life
36%
Ateshgah
Life 42%
2013
Gala Life
15%
Ateshgah
Life 43%
2014
Pasha Life
40%
Pasha Life
51%
Gala Life
17%
Ateshgah
Life
35%
Gala Life
21%
Ateshgah Life
39%
Life Insurance in Azerbaijan
• Insurance Market of Azerbaijan in Absolute Terms
in mln AZN
YEARS
2011
2012
2013
2014
Non-Life Insurance
190,5
305,7
336,9
324,2
Life Insurance
22,5
36,8
68,8
105,0
Total Insurance
213
342,5
405,7
429,2
Insurance market in Azerbaijan
• Market Share of life and none-life Insurance in Azerbaijan
100%
90%
89%
89%
83%
76%
80%
70%
60%
50%
40%
30%
20%
11%
11%
17%
24%
10%
0%
2011
2012
2013
Non-Life Insurance
Life Insurance
2014
Life Insurance in Azerbaijan
• Life Insurance GWP’s by types
in AZN
Years
2011
2012
2013
2014
Total Life Insurance
22 553 468
36 810 607
68 775 621
104 993 830
Voluntary life
insurance
3 652 743
15 085 152
43 890 606
76 654 845
Compulsory life
insurance
18 900 725
21 725 455
24 885 015
28 338 984
Life Insurance in Azerbaijan
• Compulsory Life Insurance GWP’s in AZN
28,338,984
30,000,000
24,885,015
25,000,000
21,725,455
20,000,000
18,900,725
15,000,000
10,000,000
5,000,000
0
2011
2012
2013
2014
Life Insurance in Azerbaijan
• Life Insurance GWP’s
2011
Voluntary
life
insurance…
2012
Voluntary
life
insuran…
Compulsor
y life
insuranc…
Compulso
ry life
insuranc…
2013
2014
Compulsor
y life
insurance…
Compulsor
y life
insuranc…
Voluntary
life
insuranc…
Voluntary
life
insuranc…
Life Insurance in Azerbaijan
• Life Insurance Claims
in AZN
Years
2011
2012
2013
2014
TOTAL LIFE INSURANCE
470 015
4 223 800
3 886 262
28 573 739
Voluntary life insurance
177 630
3 044 753
2 428 903
26 170 153
Compulsory life
insurance
292 385
1 179 047
1 457 359
2 403 586
Life Insurance in Azerbaijan
• Compulsory Life Insurance Claims in AZN
3,000,000
2,403,586
2,500,000
2,000,000
1,457,359
1,500,000
1,179,047
1,000,000
500,000
292,385
0
2011
2012
2013
2014
Life Insurance in Azerbaijan
• Life Insurance Claims
2011
Voluntary
life
insuranc…
Compulso
ry life
insurance
27.9%
2012
Voluntary
life
insurance
72.1%
Compulsory
life
insurance…
Compulsor
y life
insurance
8.4%
2013
Compulsor
y life
insurance
37.5%
Voluntary
life
insurance
62.5%
2014
Voluntary
life
insurance
91.6%
Trends of Life Insurance market

Life Insurance market has been increased twice during
the 2014

the growth of incomes of population

the increasing interest of population to life insurance
products

the growth of endowment product

controlling mechanisms from state organizations

bank assurance services has been increased
Trends of Life Insurance market

The endowment life insurance has an important
increase

profitability of the product (44%-55%) is triple higher
than bank deposits interest rate (10-12%)

has an advantage by tax low and by state social
foundation rules

none existing of commercial pension funds and lack of
investment funds
Trends of Life Insurance market

The bancassurance life insurance has an important
increase

PASHA Life Insurance is leading on bank assurance
business (75% of market share)

Banks are interested to allocate cash resources from
Insurance companies like a bank deposits

Recent banking reforms and some changes on credit
creation rules made bank assurance business more
demanded
Trends of Life Insurance market

The bancassurance life insurance has an important
increase

New attractive life insurance products, f.e. “borrowers
life insurance”

Some chances to implement from world life insurance
practice

the bank assurance value of market share is 10% as a
segment at the moment.
Factors that may contribute to the
development of life insurance

Development of new and more understandable
voluntary insurance products

Strengthening of marketing activities by insurance
companies

Strengthening of the population awareness and
educating processes on insurance products
Factors that may contribute to the
development of life insurance

The launch of various projects promoting insurance in
media and etc.

The establishment of training centers for the insurance
professionals preparation
Pasha Life Insurance
• About Company
“PASHA Life Insurance” OJSC carries out its activity on the basis of the
official registration at the Ministry of Taxes of the Republic of Azerbaijan
and the license dated 14.02.2011 issued by the Ministry of Finance of the
Republic of Azerbaijan.
Pasha Life Insurance
• About Company
PASHA Life Insurance has strong partnership mainly with the leading highrated international reinsurance companies:
GenRe Germany
and
SCOR France
Pasha Life Insurance
•
Main financial figures for end of 2014 (in AZN)
Total assets - 91,975,000
Share capital - 40,0250,000
Net profit - 5,326,000
Pasha Life Insurance

"PASHA Life Insurance" is a member of:

Azerbaijan Insurers Association (ASA),

Azerbaijan Risk Professionals Association (ARPA),

Azerbaijani-Turkish Business Association (ATIB),

Confederation of Entrepreneurs of Azerbaijan (ASK)

Azerbaijani-American Chamber of Commerce (AMCHAM).

The company possesses "TÜV Thüringen" ISO 9001: 2008
international quality certificate.
Awards

As a result of 2013 and 2014, "PASHA Life Insurance"
company was awarded with award “The most
profitable life insurance company of Azerbaijan” by
Romania's prestigious "XPRIMM Insurance Report"
international insurance magazine

In 2015 “PASHA Life Insurance” has been honoured
with the award “National Brand of Azerbaijan” by the
prestigious British “Luxury Lifestyle” company
Public activity and social responsibility

The company is deeply aware of its social responsibility,
always takes into account the public interest and
conducts activities of social importance.

In 2014, "PASHA Life Insurance" has been honoured
with the award "National Heritage" by the Ministry of
Culture and Tourism of the Republic of Azerbaijan
Public activity and social responsibility

One of the company's social responsibility projects is
the training for students of different universities
conducted since July, 2013

Since start of the project by now 1150 students
participated in 56 training sessions held on mainly
insurance related and other topics
Thanks!!!

We are looking forward to see you in the Special
Evening party tomorrow - 03 July, 2015 (Dinner &
Insurers’ European Games) offered by PASHA Life
Insurance” OJSC takes place at Baku Entertainment
Center (Fazail Bayramov street, 1130/33). Dress code –
casual/sport wear.