Azerbaijan, Baku, Jan.26 / A.Akhundov /
Medical insurance remains the most unprofitable insurance type in Azerbaijan. Share of compensations in fees, made by the companies on this type in 2011 was 67.83 per cent and is the highest among all types of voluntary insurance. The figure was 72.05 per cent in 2010.
Voluntary medical insurance is the most unprofitable insurance type in the country, CEO of Azerbaijani insurers' association Azer Aliyev said.
He noted the main reasons for growth of insurance payments are increase in prices for medical services and medicaments, technical progress in Azerbaijan's medicine (introduction of modern equipment, new methods of diagnostics and treatment) as well as abuse of voluntary medical insurance by doctors and insurees.
"Significant share of insurance payments falls to out-patient treatment expenses (over 75 per cent)," Mr Aliyev said.
Voluntary medical insurance left behind only compulsory insurance of civil servants (79.72 per cent) in terms of unprofitability in 2011.
High level of payments toward fees is also observed in insurance of air vehicles (58.11 per cent), insurance of agricultural animals (48.12 per cent) and insurance of vehicles (35.21 per cent).
The lowest insurance types in terms of unprofitability are compulsory insurance of workers - 1.54 per cent and voluntary life insurance - 4.86 per cent.
Niyaz Ismayilov, deputy chairman of Pasha Heyat, one of three life-insurance companies in Azerbaijan, told Trend such low rate of payments is due to specific character and young age of these types.
"When insurance market of Azerbaijan was emerging the same situation was observed in non-life insurance. It requires some time," Mr Ismayilov said.
Apart from Pasha Heyat, Ateshag Heyat and Qala Heyat are also engaged in life insurance in Azerbaijan.
Share of payments in fees of insurance companies was 28.9 per cent in 2011 against 34.6 per cent in 2010.
The total volume of premiums of all operating in the country companies amounted to 212.98 million manat (36.89 per cent growth) and payments were made to the amount of 61.57 million manat (14.38 per cent growth).
The official exchange rate is 0.7863 AZN to $1 on Jan.26