BAKU, Azerbaijan, June 24. New approaches to
motor vehicle insurance (CASCO) will be introduced in Azerbaijan,
First Deputy Chairman of the Central Bank of Azerbaijan Aliyar
Mammadyarov said at the Azerbaijan International Insurance Forum in
Baku, Trend’s
correspondent reports from the event.


According to him, Azerbaijan’s insurance sector has made
significant progress in recent years.


He noted that this development has been driven by the expansion
of services offered by insurance companies, improved service
quality, greater public awareness of insurance, and a series of
structural reforms implemented by the Central Bank.


Mammadyarov said the Central Bank had approved a three-year
Financial Sector Development Strategy, which places particular
emphasis on strengthening the insurance market and ensuring its
sustainability.


“The final year of the strategy’s implementation is now
underway, and a number of important results have already been
achieved,” he said.


The Central Bank official added that a new management model has
been introduced in insurance companies, with a stronger role for
board committees in corporate governance, increased participation
of independent board members, and the establishment of internal
control and risk management functions.


He said these changes have aligned the sector more closely with
international best practices.







“Significant steps have also been taken to improve the quality
and accessibility of insurance services.


Reforms in compulsory motor insurance have contributed to a more
risk-based approach, improved driver discipline, and more efficient
mechanisms for compensating losses related to harm to life, health,
and property of third parties.


Cooperation between the banking and insurance sectors has also
deepened.


To strengthen social protection for citizens with credit
obligations, new life insurance mechanisms have begun to be
introduced,” Mammadyarov said.


He also noted that digital transformation efforts have expanded
the use of online insurance services, making contract signing and
service delivery more flexible and convenient.