Page 20 - Turkinsurance Digital Magazine

20 cover story

The insurance sector is not just an institution that transfers risks. inflation reached double-digit figures due to price increases in the
The rapid transformation in the sector will accelerate even further global economy, but it later declined to single-digit levels. Inflation
in the future. is expected to remain around 2% to 4% in the upcoming period.

Ziya Aliyev, General Director of the Central Bank One of the most important factors for the insurance market is eco-
of Azerbaijan: Life expectancies are increasing nomic developments and the age distribution of the population. The
population in Azerbaijan is young, but the proportion of young peo-
ple is higher in Turkey. This situation presents an opportunity for
The Azerbaijani economy has experienced rapid growth in recent economic development.
years. Although the country’s oil sector has a significant impact, we
also want to develop the non-oil economy as a government. In 2023,
Looking at birth rates, a decline has been observed in Azerbaijan
in recent years, but we are lagging behind Turkey in this regard.
The expected life expectancy has reached 78 years. Although we
are still behind compared to Turkey, we have made improvements
in this area in recent years. This development creates opportunities
for economic growth.

Azerbaijan’s financial sector is structured with banks being more
dominant. However, the financial sector is growing, and insurance
and banks play an important role in this growth.

The insurance market in Azerbaijan is developing. The insurance
penetration rate is at 1% of the gross national product. In the non-
oil economy, this rate has reached 2%. As the government and the
Central Bank, we have a goal to increase the insurance penetration
rate and improve the protection of the economy.

Can the Financial Impacts of

Natural Disasters Be Predicted?

international experts. The panels included topics such as “In-
creasing Earthquake Resilience in Turkey: Addressing Critical
Issues and Closing the Protection Gap,” “Innovative Earthquake
Risk Solutions: Sensor-Based Parametric Coverage and Moni-
toring for Enhanced Resilience,” and “Harnessing the Power of
Artificial Intelligence, Machine Learning, and Emerging Tech-
nologies in Insurance: Applications, Challenges, and Opportuni-
ties. We have compiled important statements from the esteemed
speakers in these panels for you in our report…

Parametric Products Are Rapidly Evolving
Over the Last Five Years

Jean-Christophe Garaix, President of Agriculture and Paramet-
rics at Liberty Mutual Reinsurance, shared his thoughts on the
Another speaker at the summit was Prof. Dr. Sinan Akkar, Di- applicability of parametric insurance and reinsurance systems in
rector of the T-RUPT Disaster Modeling and Data Analytics De- various countries, including Turkey. He focused particularly on
partment. Akkar addressed the key components of earthquake solutions related to earthquakes, providing information on earth-
loss modeling and its applications in the insurance sector. In quake velocity and risks, and explaining the methods they have
his speech, he stated that loss modeling provides an assessment developed in these areas. Garaix highlighted the developments
aimed at predicting the social and financial impacts of natural in parametric products recorded over the past five years and ex-
disasters. plained the map control approach.

Key Topics from the Panels He noted that calculations made using data obtained

from local agencies have been made more accurate by
After the opening speeches on the second day of the summit, the utilizing USGS. Additionally, he emphasized their col-
event continued with panels featuring many esteemed local and