Baku, Azerbaijan, Oct.13
By Azad Hasanli - Trend:
Restrictions on related sales by banks, which are planned to be introduced by the Central Bank of Azerbaijan (CBA) before the end of 2014, may contribute to increase in competition on the insurance market, the head of Azerbaijan Insurers Association (AIA) Orhan Bayramov told Trend Oct.13.
In banking experience of Azerbaijan, if a bank customer needs to acquire an insurance policy, he is sent to the insurance company, which cooperates with that bank or co-exists with it in the same holding.
With the introduction of restrictions for banks on the related sale of services by the CBA, banks will be able to only give advice to clients in connection with the choice of insurer.
"If earlier any company was confident that the purchase of an insurance product by a customer of a specific bank will be carried out in that bank, now things will be different," he said. "Introduction of restrictions on related sales by the Central Bank enhances competition on the insurance market of Azerbaijan."
Bayramov said that insurance companies will be forced to improve their product line due to increased competition. In addition, he said that such measures may lead to lowering of prices for insurance products.
There are 44 banks and 28 insurance (taking into account 1 reinsurance) companies in Azerbaijan.