Azerbaijan financial sector sees rise in consumer credit and insurance

Azerbaijan's financial sector is seeing significant shifts in credit and insurance markets. According to Central Bank data, the total bank credit portfolio reached 30.89 billion manat by the end of May 2026. While business loans remain the largest segment at 16.40 billion manat, consumer loans are growing at a faster rate, increasing by approximately 15.8% compared to the end of 2024, outpacing the 10.9% growth in business loans.

Economist Eyyub Kerimli noted that the rapid rise in consumer borrowing is driven by citizens financing personal needs such as vehicles, household appliances, education, and repairs, as well as using credit to manage rising living costs due to inflation.

Simultaneously, the property insurance market in Azerbaijan has expanded. Between January and July, property insurance premiums collected totaled 179.28 million manat, a 23.8% increase over the same period last year. Overall insurance premiums collected by companies in the country rose to 1.064 billion manat, a 7.3% year-on-year increase. Ulviyya Jabbarova, Chair of the Azerbaijan Insurance Association, stated that the national insurance market has approximately doubled in size over the last four years due to state strategic goals and Central Bank reforms.