THE IMPACT OF PUBLIC INSURANCE POLICY ON THE PRIVATE INSURANCE MARKET: THE EXAMPLE OF AZERBAIJAN

Abstract

Economic actors, whether individuals or organizations, generate externalities via their economic activities, which may have either positive or negative effects on other economic units that are not directly connected to them. These actions are undertaken with the aim of maximizing their own benefits or profits. The insurance industry, which plays a significant role in economic activity, also generates social externalities. The insurance business generates significant externalities, resulting in a substantial multiplier impact on the economy. The insurance industry will significantly contribute to the key components required for investment in Azerbaijan's rising economy, including savings, financial possibilities, a trustworthy environment, and risk reduction. Azerbaijan's contribution in the global insurance market is quite small in proportion to its potential. This article aims to analyse the impact of governmental insurance practices on private insurance.