CBA: COP29 opened new opportunities for insurance markets

Global climate change is one of the key challenges facing the insurance sector, creating new risks that require adaptation, said Aliyar Mammadov, First Deputy Chairman of the Central Bank of Azerbaijan, at the inaugural Assembly of the Turkic World Insurance Union in Shusha, Report informs.

According to him, the geography of both Azerbaijan and the Turkic states is particularly vulnerable to climate change, which makes the adaptation of insurance products and services essential.

"Assessing and modeling climate risks, promoting green insurance products, and developing risk-sharing mechanisms are among the main tasks of insurance markets. Strengthening cooperation in reinsurance also plays an important role in managing risks effectively," he said.

Mammadov stressed that Azerbaijan's chairmanship and hosting of COP29 in 2024 should be specially highlighted. "COP29, as the most important global climate summit, showcased our country's active stance in the fight against climate change and opened new opportunities in sustainable finance, green insurance, and climate risk management," he noted.

He added that joint initiatives against climate risks within the framework of the Turkic World Insurance Union would enhance the resilience of member economies and help create a stable development environment for future generations.

"To shape the future of the insurance sector and respond adequately to new challenges, we must apply progressive international practices while considering the specific characteristics of local markets," Mammadov emphasized.

He underlined the need for broad discussions and exchange of knowledge and experience, expressing confidence that the Assembly in Azerbaijan would contribute to closer integration of Turkic states' insurance markets, the achievement of shared development goals, and more effective implementation of strategic objectives.

"At the same time, the decisions adopted within the Assembly will serve not only the national markets but also the entire Turkic world's insurance sector by boosting competitiveness, fostering the adoption of new technologies, and ensuring sustainable development," he added.