Market participant: Agricultural insurance to become priority area in Azerbaijan
Azerbaijan, Baku, June 3 / Trend U.Ismayilova /
Agriculturul insurance in Azerbaijan will become a second priority area after the oil sector, Alfa Sigorta Company Board of Directors head Khayal Mammadkhanli said.
"The active promotion and implementation of agricultural insurance is important, and the recent natural disaster in Aran serves as proof," Mammadkhanli said.
In recent weeks, floods occurred in 40 districts of Azerbaijan due to the rise of the Kur River and heavy rainfalls. As a result of the disaster, about 20,000 houses were flooded, more than 300 were destroyed, 2,000 became unsafe and 50,000 hectares of cultivated land were left under water.
He said Azerbaijani insurers willing to take risks on agricultural insurance cannot meet the challenges involved with providing such services.
Under the law on insurance activity adopted in March 2008, insurers can take on only 10 percent of the total risk insurance. Ninety percent must be transferred to reinsurance to protect the company's portfolio.
Alfa Sigorta was registered in August 1997 under the name "Murad." In June 2005, the company changed its name to Alpha Insurance. In December 2006, the company moved to full ownership under Texnika Bank. The company provides services on 25 types of insurance services. Authorized capital is 3.1 million manat. The company's premiums on the basis of activity in January-April totaled 0.37 million manat, with payments worth 0.07 million manat.