Baku, Azerbaijan, June 24
By Anvar Mammadov – Trend:
The insurance market in Azerbaijan will gradually stabilize by late 2016 or the middle of 2017, Chairman of the Board of the PASHA Life Insurance OJSC Mursal Rustamov told reporters.
He noted the significant growth of the life insurance market, as shown by fees portfolio of the insurance company.
“We feel this growth as our own fees increase,” Rustamov said. “Thus, compared to the first five months of 2015, our fees increased by 20 percent in January-May 2016.”
He added that in spite of the two devaluations of Azerbaijan’s national currency in 2015 and the reduction of the flow of customers from the banking sector, the insurance company was able to increase sales.
The Central Bank of Azerbaijan devaluated the manat on Feb. 21, as a result of which the exchange rate of manat dropped by almost 34 percent and stood at 1.05 manats per US dollar.
The CBA switched to the floating rate of manat on Dec. 21, as a result of which the exchange rate of dollar and euro increased by 47.6 percent and 47.9 percent, and stood at 1.55 manats and 1.685 manats, respectively. As a result, manat’s rate against the US dollar dropped by 97.6 percent throughout 2015.
“The volume of our sales on compulsory types of life insurance grew by about 15 percent,” Rustamov said. “This primarily shows the growing interest in life insurance.”
He added that the share of the PASHA Life Insurance OJSC in Azerbaijan’s life insurance market amounts to 45 percent, and the company plans to increase its fees to $50 million till late 2016.