Türkiye sees growing potential for insurance investment in Azerbaijan

Turkish insurance companies could potentially re-enter the Azerbaijani market as investor interest in the sector grows, said Ahmet Yasar, Chairman of the Insurance Association of Türkiye.

Yasar noted that Turkish insurers had previously maintained a presence in Azerbaijan through shareholdings in companies such as Günay Anadolu Sigorta, Basak Inam Sigorta, and AXA MBask, Caliber.Az reports via local media.

"The main participants of Azerbaijan's insurance market remain local companies. Nevertheless, I believe that in the upcoming period, the interest of foreigners in this market will increase again. The expansion of cooperation within the Insurance Association of the Turkic World, closer familiarization of markets with each other, and the reduction of uncertainties will increase the interest of Turkish investors in Azerbaijan's insurance sector," Yasar said.

He pointed out that local investors in Türkiye had shown limited interest in establishing insurance companies for many years. However, that trend has begun to change.

"In Türkiye, for many years, local investors did not show particular interest in establishing insurance companies. However, in recent years, we have observed a growing interest in this field," he said.

Yasar added that a similar pattern is emerging in Northern Cyprus, where the number of insurance companies has been increasing.

"The same trend is observed in Northern Cyprus, where the number of insurance companies is increasing. In this regard, we highly assess the likelihood that investors from Türkiye and Northern Cyprus will direct investments into insurance in Azerbaijan in the future," he noted.

According to Yasar, stronger cooperation among Turkic states in the insurance sector, coupled with improved market familiarity and a more predictable business environment, could help attract new foreign investment to Azerbaijan's insurance industry in the coming years.

By Vafa Guliyeva