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Life Insurance May Become Most Developed Insurance in Azerbaijan – Expert

Business Materials 3 March 2008 14:23 (UTC +04:00)

Azerbaijan, Baku, 3 March / Trend corr. U.Ismailova / Life insurance may become one of the most developed insurance types in Azerbaijan in the next few years, Dovlat Salimov, expert and former official of the Azerbaijani-Turkish insurance company Basak Inam, stated on 3 March.

The expert said that life insurance is currently one of the lowest developed insurances in spite of life insurance being a leading insurance in foreign insurance markets. About 65% of insurance companies in developed countries are engaged in the life insurance sector.

Salimov said that life insurance is considered a separate product and there are companies which render only this type of insurance in some European countries.

In spite of the full-scale development of life insurance in the world, the Azerbaijani population does not rely on this type of insurance. There is a different opinion towards life insurance amongst the public.

The expert believes that the following reasons are the main obstacles for development of life insurance:

- distrust of the population,

- unemployment in the country,

- income rate of population,

- shortcomings of professional staff in this insurance type,

- weak promotion of life insurance,

- way of managing this insurance type.

The following is necessary for development of the service in the market:

- full-scale information,

- development of insurance universities,

- rise of monthly labor payments of population,

- development of marketing system,

- creation of actuarial institute in the country,

- development of staff potential in life insurance companies,

The correspondent can be contacted at: [email protected]

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