Azerbaijan Insurers Association advises market players to use financial crisis to develop life insurance
Azerbaijan, Baku, Feb. 26 / Trend , U.Ismayilova/
Azerbaijani insurance companies should take advantage of the current stagnation in the market to develop life insurance, Azerbaijani Insurers Association (AIA) Chairman, MBASK Chairman Jamil Malikov said.
"Life insurance in Azerbaijan is not well-developed. Insurance companies should take further steps to support the development of the market," he said.
Azerbaijani insurance companies have enough resources. Forming a life insurance habit, as in all developed countries, is an important step to developing the market.
Life insurance accounts for roughly 60 percent of the market portfolio in developed countries and is below one percent in Azerbaijan, he said.
Malikov said life insurance in Azerbaijan started to develop in 2006 during the rapid introduction and development of mortgage lending in the country.
Borrower life insurance was obligatory at the first stage of mortgage lending.
In 2007, the item was removed from mortgage contracts due to high costs.
After annulling obligatory borrower life insurance, the development of life insurance services once again stalled, he said.
"Insurance companies now have to develop new interesting insurance products, conduct trainings and improve services," Malikov said.
The AIA was established in December 2006.
The AIA supervisory board comprises 5 companies: MBASK, Standard Insurance, International Insurance Company, Azersigorta and Ateshgah.
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