Investment Incomes Form over 40% of Insurers Incomes: Participants of Market

Azerbaijan, Baku, 11 July / corr. Trend U.Ismayilova / More than 40% of the Azerbaijani insurers are formed at the expense of investment incomes, Jamil Melikov, the President of MBASK, one of huge insurance companies, said.

"Insurers' deposit at banks provides 1.25% of all credit portfolios of the Azerbaijani banks," Melikov said.

According to Melikov, deposits comprised 94.57% of the Azerbaijani insurance companies' investment portfolio in 2007. Investment incomes amounted to AZN 6.83mln and profits AZN 17.12mln in 2007.

Investment policy is one of main directions of insurers' activities, the President of the company said. Insurance companies and pension funds are institutional investors.

Melikov considers that prospects of the insurance market's development are as follows:

- Influence of new legislation on formation of new generation insurers,

- Prospects for development of bank insurance, and then retail insurance,

- Segment development of obligatory types of insurance,

- Establishment of economic and legislative base for life insurance development

- Growth of insurers' investment potential,

- Market concentration in the hand of huge insurers,

- Insurance premium indicator with 22% per capita demonstrates great potential of further growth of the Azerbaijani insurance market.

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