In the continuously changing world, risks are inevitable. The risks accompany us in all areas, they are part of the economic, political and social activity of man. World financial institutions as a solution recommend many funds in risk management. However, it can be said with confidence that the most successfully tested, unique tool among these funds is the insurance mechanism.
Thanks to insurance services, you can minimize financial losses caused by unforeseen risks. Accordingly, the question arises: what is the state of the insurance sector in Azerbaijan today?
In 2020, a mission was entrusted to the Central Bank of Azerbaijan to control and regulate the insurance sector. After that, the thorough restructuring of the country’s insurance system began: processes aimed at increasing insurance literacy, restoration of confidence in insurance, international standard corporate governance and financial accounting are being introduced. The result of these reforms should be a developed, financially stable insurance market with a high level of service provided to the population.
Active participant and partner of the Central Bank in this work is the Association of Azerbaijan (ASA) insurers. ASA is a public association operating 16 years, whose founders are 20 insurance companies and one reinsurance company. The main activities of the ACA are propaganda of insurance among the broad segments of the population, the study of the best international practices that contribute to the improvement of insurance legislation, and work in the direction of increasing the personnel potential of insurers.