Further growth potential in Azeri non-life insurance sector is strongly dependent on tariffs, which are closely regulated by the government, Fitch Ratings says in a new report, ONA reports citing Fitch.
Life insurance remained a small part of the Azeri insurance sector and premiums in the life insurance sector dropped since the exemption was reduced to 50% of the premium paid on 1 January 2019. Nonetheless, the life sector has medium-term growth potential due to the low penetration, with the bancassurance products driving this growth, in Fitch's view.
"The concentration in the Azeri insurance market is pronounced. Fitch expects the growing concentration and narrowing segments with low barriers for entry to reduce business opportunities for smaller insurers", noted in the report.