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Azerbaijan accelerates compulsory life insurance growth

Economy Materials 18 June 2020 15:11 (UTC +04:00)
Azerbaijan accelerates compulsory life insurance growth

BAKU, Azerbaijan, June 18

By Yusif Aghayev – Trend:

The insurance companies operating in Azerbaijan collected the premiums on compulsory insurance against disability as a result of industrial accidents and occupational diseases worth 10.6 million manat ($6.2 million) in April 2020, which is 5.5 million manat ($3.2 million) or by over twofold more than in April 2019, Trend reports referring to a report published by the country's Central Bank.

At the same time, the total volume of premiums collected in this type of insurance from January through April 2020 is 21.8 million manat ($12.8 million). Thus, almost half of all fees from January through April 2020 accounted only for April despite a decrease in economic activity observed during this month related to the introduction of a special quarantine regime in the country and the application of restrictive measures.

“The reason is that compulsory insurance against disability as a result of industrial accidents and occupational diseases was digitalized in September 2019,” Azer Aliyev, chairman of the Supervisory Board of the Azerbaijan Insurers Association, told Trend.

“Currently, insurance certificates, as well as annexes to them within this type are issued online,” the chairman added. “This became possible by integrating the database of the Compulsory Insurance Bureau into the e-system of the Azerbaijani Ministry of Labor and Social Protection.”

"As a result of the measures taken within this reform, the clarified data on the contracts within this type of compulsory insurance, including those related to the number of insured people and their salaries, is obtained, which allowed to increase penetration on this type of insurance and achieve an increase in the amount of the collected premiums," Aliyev added.

The compulsory insurance against loss of professional ability to work as a result of industrial accidents and occupational diseases is a type of insurance that envisages the payment of insurance claims in connection with loss of professional ability to work or death as a result of harm to the life and health of people insured from loss of professional disability due to industrial accidents and occupational diseases.

This type of insurance is carried out in Azerbaijan on the basis of the relevant law adopted on May 11, 2010.

The Azerbaijani insurance companies collected the compulsory insurance premiums worth 21.3 million manat ($12.5 million) in April 2020, which is 3.4 million manat ($2 million) or 19.2 percent more than in April 2019.

(1 USD = 1.7 AZN on June 18)

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