Poor development of life insurance in Azerbaijan connected with population's distrust: participant of market
Azerbaijan, Baku, September 5 / Trend U. Ismayilova /
Poor development of life insurance in Azerbaijan was caused by lack of the population's trust, chairman of the state commercial insurance company AzerSigorta, Mammad Mammadov, said.
"About 90 percent of insurers' premiums were formed in Azerbaijan owing to life insurance during USSR. At present, this figure does not reach even 1 percent," Mammadov said.
He said that the cause of potential insurers' disappointment was that after collapse of USSR the corresponding payments were not given to the population. These payments were gathered owing to accumulative life insurance. As of January 1, 1992, total sum on insurance agreements hit 230 million of Soviet rubles.
Another cause of the population's distrust was non-payment of the population's deposits to Azerbaijani Soviet Socialist Republic's Saving Bank, Mammadov said.
There are 28 insurance and 1 re-insurance companies in Azerbaijan. About 1,986 million investors were revealed during inventory conducted by Kapital Bank. Total sum of their deposits hit 4.8 billion of Soviet rubles. According to preliminary calculations of the Ministry of Finance, indexation can be conducted during 8 years. Up to $600 million is necessary for these purposes.
State insurance company AzerSigorta was founded in 1992, after the collapse of the Soviet Union, on the basis of former state insurance board. It has 80 insurance agencies in all cities and regions of Azerbaijan. The company renders services on 10 obligatory and 27 voluntary types of insurance. The authorized capital of the company is 3 million manat.
As a result of activity in the first six months, AzerSigorta is the leader among all insurance companies in Azerbaijan with premiums of 5.56 million manat and payments of 1.95 million manat.
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