Azerbaijan’s insurance industry continued to expand steadily in the first ten months of 2025, posting double-digit growth in premiums across mandatory, voluntary, life, non-life and property insurance segments, according to new data from the Central Bank of Azerbaijan (CBA), Report.az reported.
Mandatory Insurance: Premiums up 6.5%
From January to October, insurers collected 301.33 million manats in mandatory insurance premiums – a 6.5% increase compared to the same period in 2024.
Payouts under mandatory insurance reached 120.84 million manats, up 7.8% year-on-year.
For every 100 manats in premiums, insurers paid out 40.1 manats, slightly higher than last year’s 39.6.
Voluntary Insurance: Strong 15% Growth
Premiums under voluntary insurance surged to 954.64 million manats, marking a 15.1% increase.
Payouts grew even faster — up 27.7%, reaching 651.76 million manats.
The loss ratio rose to 68.3 manats per 100 manats of premiums, compared to 61.5 manats last year.
Non-Life Insurance: Premiums Rise Nearly 9%
Non-life premiums totaled 545.27 million manats, up 8.7% year-on-year.
Payouts under non-life products increased to 225.73 million manats (+4.7%).
Insurers paid 41.4 manats per 100 manats of premiums (vs. 43 manats last year).
Life Insurance: Sector Expands Rapidly
Life insurance premiums reached 710.70 million manats, a 16.5% increase from 2024.
Payouts surged 34.5% to 546.87 million manats. The loss ratio increased to 76.9 manats per 100 manats of premiums, compared to 66.6 last year.
Property Insurance: Double-Digit Growth in Premiums and Payouts
Property insurance premiums stood at 196.25 million manats (+9.7%). Payouts rose sharply by 29.7%, reaching 34.94 million manats.
The payout ratio rose to 17.8 manats per 100, up from 15.1 a year earlier.
CBA: Insurance Penetration Must Increase
Speaking at an AmCham Azerbaijan event in Baku, CBA’s Director of Sustainable Financial Development Rustam Tahirov said the sector’s penetration rate – at 1.1% of GDP (and 1.8% of non-oil GDP) – remains far below levels seen in advanced economies.
Tahirov stressed the need to grow insurance demand rather than focus on maximum penetration figures, noting that per-capita premiums reached 132 manats in 2024.
Unemployment Insurance for Borrowers Under Development
Tahirov also announced that Azerbaijan is working on a new insurance mechanism to protect borrowers from unemployment.
The product would allow insurers to cover loan payments until the borrower finds new employment. The mechanism will initially apply to consumer loans, with business loans considered later.
Bancassurance Roadmap Approved
The CBA has finalized a roadmap for expanding bancassurance, the model that integrates banking and insurance services.
A joint working group – formed by the Azerbaijan Banks Association and the Azerbaijan Insurers Association – is implementing the plan.
Tahirov noted that bancassurance benefits all sides:
Banks gain commission income and reduced credit risk
Insurers access wide customer networks at lower cost
Consumers receive easier access to insurance products
The CBA has made bancassurance one of its strategic priorities.
Combined Market Totals
Across all 16 insurance companies operating in Azerbaijan:
Total premiums (Jan–Oct 2025): 1.255 billion manats (+12.9%)
Total payouts: 772.60 million manats (+24.2%)
