Azerbaijan’s Ateshgah Life insurance company preparing new products
BAKU, Azerbaijan, Feb. 20
By Yusif Aghayev – Trend:
Azerbaijan’s Ateshgah Life company’s insurance premiums decreased by 35 percent in 2019, Trend reports referring to the company.
The voluntary life insurance fees decreased by 86.3 million manat ($50.7 million) or by 28 percent in Azerbaijan in 2019 compared to 2018, Trend previously reported.
The company’s fees for the reporting period decreased by over 21 million manat ($12.3 million), which is a decline of 35 percent. This is connected with the changes in the tax legislation.
On the other hand, the restriction (not more than 50 percent) imposed on the share of total income that an individual may transfer to the accumulative life insurance also affected to this.
The share of survival insurance in the total volume of the collected insurance premiums also decreased by 35 percent in accordance with the general trend of changes in the market.
The survival insurance is one of the main types of life insurance. The survival insurance is the basis of long-term accumulative insurance, which accounts for more than half of all insurance premiums collected in the world. It is a specific form of long-term cash savings. It can be used as an independent type of life insurance or be a part of the mixed life insurance.
However, a decrease in fees in the segment of voluntary life insurance did not greatly affect the earned profit as in the field of insurance against accidents at work and occupational diseases, premium growth throughout the market amounted to 12.8 million manat ($7.5 million) or 36 percent compared to 2018. A great share in the premiums accounted for Ateshgah Life insurance company.
A lot of work was carried out to automate the processes of the company’s activity in 2019.
The entire workflow was fully automated. The innovations introduced into IT system for compulsory types of insurance made it possible to increase workforce productivity and the quality of the services with less costs.
In general, the company's management is optimistic about the future although it does not expect a great increase in the volume of premiums which are collected in 2020.
Presently, in accordance with the development strategy of the company, the efforts are mainly made to explore the topical needs in the voluntary life insurance market and on this basis to create new, alternative products that are relevant for this insurance segment.
Moreover, the integration of the compulsory insurance system - against accidents at work and occupational diseases into the e-government website will increase the amount of premiums by about 15 percent. The company also intends to conduct activity to promote insurance.
Ateshgah Life Insurance Company, the first life insurance company in Azerbaijan, was established in March 1998.
The company renders the services in the following types of life insurance, namely, term life insurance, cumulative life insurance, credit life insurance, critical illness insurance and compulsory life insurance against disability as a result of occupational diseases and accidents at work.
Ateshgah Life Insurance Company renders insurance services to both individuals and legal entities. More than 80 employees work in the company. It organizes regular training for employees to ensure professional customer service.
In late 2019, the company collected insurance premiums worth over 39 million manat ($22.9 million) and paid insurance indemnities worth 19.1 million manat ($11.2 million), ranking fourth in the ranking of insurance companies in Azerbaijan.
In general, Azerbaijani insurance companies collected insurance premiums worth 681.1 million manat ($400.6 million) in 2019, which is 46.7 million manat ($27.5 million) or 6.4 percent less than in 2018 and paid insurance claims for 301.5 million manat ($177.3 million), which is 61.2 million manat ($36 million) or 25.4 percent more than in 2018.
Today, 22 insurance companies and one reinsurance companies operate in Azerbaijan.
(1 USD = 1.7 AZN on Feb. 20)