Insurance companies' dependence from auto insurance hampers development of market in Azerbaijan

Azerbaijan, Baku, Oct. 6 / Trend A. Akhundov /

The cooperation of many insurance companies, mainly, with the banking sector hampers the development of the insurance market, Samir Mustafayev, chairman of Temza Sigorta Qrupu Anglo-Azerbaijani Insurance Company, said.

"Many insurance companies operate on auto loans. It is wrong because there is no market.

Insurance companies are forced to deal with car insurance," Mustafayev said.

Mustafayev said that the cooperation between banks and insurance companies is also necessary, but in case of 10 percent of total premiums.

"There are companies where 80-90 percent of the total fees fall to this type of insurance. There is no profitability," Mustafayev said.

He said that the measures of the Ministry of Finance to increase the minimal level of total capital of insurance companies to ensure their sustainability, are correct. But the increase should be conducted stage-by-stage.

"Small and weak companies that do not adhere to the requirements for capitalization must be closed. The companies that provide good and quality services, need state support. In particular, they should be given time to improve total capital of up to 2 million within more than one year, and gradually, " Mustafayev said.

"The Association proposes to amend the schedule of capitalization. There are some questions about licensing and investment," Khalilov said. We are currently considering these proposals, and believe that there is a need to make some change on these issues. 

Specific requirements will be adopted by late 2010.

According to the approved minimal requirements, the capital of insurance companies must be brought up to 2 million manat, reinsurance companies - 4 billion manat by January 1, 2010, up to 3.5 million manat and 7 million manat respectively by January 1, 2011, 5 million and 10 million manat manat respectively by January 1, 2012.

Samir Mustafayev, Temza Sigorta head said that good staff is required to develop the market of insurance services.

"These problems must be solved at the state level. In principle, our universities have departments of insurance. But graduates are very weak. They need practice," Mustafayev said.

On the other hand, there are more positive aspects than the negative ones on the insurance market.

"But if we want, it will be possible to eliminate these negative aspects. I expect good growth on the insurance market in the future," Mustafayev said.

He said that the law "Insurance activity" acting since March 2008 does not give in to the similar laws in other countries. But the question is how we will adhere to this law.

There are 27 insurance and one reinsurance companies in Azerbaijan.

On Oct. 6, the official exchange rate is 0.8022 manat to $1.

'Intellectual Field' to allow stabilize production level in Kazakhstan
'Intellectual Field' to allow stabilize production level in Kazakhstan
Uzbekistan, Tajikistan to maintain Uzbek energy and water resources balance
Uzbekistan, Tajikistan to maintain Uzbek energy and water resources balance
Energy efficiency to be increased at Uzbek manufacturing enterprises
Energy efficiency to be increased at Uzbek manufacturing enterprises
Loading Bars
Latest
American Airlines to get $5.5 bn loan from US Treasury
Togo's prime minister and government resign, presidency says
Brazil exceeds 140,000 deaths from COVID-19
124 illegal immigrants rescued off Libyan coast: UN
Seventeen more coronavirus patients die in Moscow in past day — crisis center
U.S. COVID-19 cases surpass 7 mln -- Johns Hopkins University
FAA chief set to conduct 737 MAX evaluation flight next week
UK pledges over $400 million for WHO, calls for end to 'ugly rifts'
Military plane crashes in Ukraine, killing 22
UAE reports 1,008 new COVID-19 cases, 89,540 in total
Turkmen textile company reveales production volume
Coronavirus cases pass half-million mark in France
Kazakhstan's export to Romania decreases amid COVID-19
TRT World aires documentary on devastating effects of Armenian-Azerbaijani conflict (VIDEO)
Inflow of Turkish labor migrants to France plunges to record low
Iran's trade with EU declines
Google to block election ads after November 3
Police officer shot dead at custody centre in London
Turkmen textile company talks impact of COVID-19 on exports
Level of dollarization on individuals' bank deposits in Azerbaijan increase
Georgia reveals volume of processed grapes as of Sept.25
Rise in COVID-19 cases in Turkey now under control, health minister assures
Azerbaijani president: According to our intelligence, very serious military training under way
President Ilham Aliyev: Armenia is preparing for war
President Ilham Aliyev: Region has not become a safer place, unfortunately, situation is deteriorating
US embassy in Azerbaijan urges to reconsider non-essential travel outside Absheron Peninsula
Global COVID-19 death toll could hit two million before vaccine in wide use: WHO
'Intellectual Field' to allow stabilize production level in Kazakhstan
Iran's auto giants to talk over hybrid vehicles production
Azerbaijani ministry discloses volume of toxic emissions from cars
Georgian expert: Armenian authorities controlling separatist regime in Karabakh crossed red line
Azerbaijani minister of economy reviews activity of industrial enterprises in Ganja (PHOTO)
Volume of maritime cargo transshipment from Portugal via Turkey disclosed
Tactical-special and combat training classes underway in Azerbaijan (PHOTO/VİDEO)
EBRD and FAO to assist Georgia in field of agro tourism
Uzbekistan to be supplied with Russian coronavirus vaccines
Uzbekistan, Tajikistan to maintain Uzbek energy and water resources balance
Azerbaijan’s Bakcell preparing discounts for teachers within project
UK study shows rapid test has diagnostic sensitivity over 99%
Kazakhstan's grain export volume revealed
Amazon hiring 150 employees in Israel
Baku Higher Oil School on top of grade ranking among universities in Azerbaijan
Mortgage lending via state line in Azerbaijan up
Russia leading exporter of polymer products to Turkmenistan
Volume of deposits up in Georgia
September occupancies up in Georgian regional hotels
Kazakhstan, Azerbaijan strengthening co-op in medical tourism
Rates of dollarization on loans and deposits up in Georgia
Volume of deposits in Azerbaijan grows
Russia increases exports of frozen vegetables to Turkmenistan
Bakcell talks about network congestion and secure internet
Azerbaijani banks increase lending to clients
Iranian government is modernizing agriculture in Tehran Province
Italy lowers import of Turkish cars
Loans and deposits, expressed as percentage of GDP, increase in Georgia
Netherlands increase export volume to Kazakhstan year-on-year
Georgian hazelnuts exports up
Azerbaijan's Anglo Asian Mining reveals 1H2020 income
Several industrial projects to be implemented in Kazakhstan's Almaty
Azerbaijan's Azexport portal to place insurance services
Sooner Armenia withdraws its armed forces from the occupied territories of Azerbaijan, sooner the conflict will be resolved (PHOTO)
Moscow reports 1,560 new coronavirus cases, highest since June 12
Azerbaijani schoolchildren perform successfully at 32nd International Olympiad in Informatics (PHOTO)
Azerbaijan confirms 137 more COVID-19 recoveries
ADB: Developed capital markets enhance financial stability in Azerbaijan
Covid-19 daily infections swell 12% to new record
Energy efficiency to be increased at Uzbek manufacturing enterprises
Shell books tanker to load crude at Libya's Zueitina oil port
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
Kazakhstan's QazTech Ventures to fund Uzbek startups
Gas exports from Azerbaijan to Turkey significantly up
VTB Bank, Entrepreneurship Development Fund of Azerbaijan issuing loans to businesses
Azerbaijani FM receives ambassador of Greece
Vietnam interested in import of Azerbaijani products
EU working with Georgian partners to strengthen cybersecurity in country
Azerbaijani ministry talks introduction of contactless payment in public transport in districts
Central Bank of Azerbaijan to hold deposit auction
Azerbaijan discloses data on tobacco exports for 2019
BP: Oil demand to remain central part of energy system for next 10–15 years
Azerbaijani MP: Armenia resettling terrorists to Nagorno-Karabakh region, facts prove ASALA's presence
Apple says has always abided by Irish law as EU appeals court ruling
Precious metal prices in Azerbaijan up again after decline
Iran assigns housing units to low income
Money supply increased in Uzbekistan
Uzbekistan to export fuel diesel to Pakistan
Georgia reveals volume of premiums attracted by insurance companies
UN highlights Azerbaijani president’s speech at 75th session of UN General Assembly
Kazakhstan's largest oil pipeline company to buy power stations via tender
LNG demand to double over next 20 years
Volume of gas production by Turkmenistan’s Lebapgazchykarysh revealed
Expert talks putting Azerbaijan's domestic tourism back on its feet
Deputy FM: Rejecting proposals to resolve conflict, Armenian leadership makes negotiations meaningless
Road in border village of Azerbaijan’s Gazakh district being overhauled (PHOTO)
Israeli politician: We find Azerbaijan a good friend of Israel
Around 6,000 people internationally wanted by Russia
Buffett-following investment trust to list in London
EU Special Representative: EU has strong interest in peace, stability in South Caucasus
Georgia reports 265 new cases of coronavirus
Instagram fixes breach found by Check Point
US’ share in Azerbaijan's total imports grows
All news