Azerbaijan to expand mandatory insurance to cover fire and explosion risks

Azerbaijan’s central bank has drafted legislation to expand compulsory property insurance to include fire and explosion risks, Central Bank Executive Director Vusal Qurbanov said at the inaugural Assembly of the Turkic World Insurance Union in Shusha.

He said the aim was to reduce the fiscal burden on the state from catastrophic risks by transferring them to insurers. “The system will cover not only catastrophic but also regularly occurring social risks,” Qurbanov added.

Currently, mandatory insurance in Azerbaijan covers real estate, civil liability of vehicle owners, liability linked to real estate operation, and passenger accident insurance.