Azerbaijan, Baku, Dec.25 / Trend U. Ismaylova /
The second Azerbaijani insurance company dealing exclusively with life insurance, Qala Heyat, plans to cover 20 percent of the life insurance market in the country by late 2011, the company's board chairman, Abbas Babayev told Trend.
"Qala Heyat intends to increase its portfolio to include both compulsory and voluntary types of insurance," Babayev said.
According to him, the company's specialists will complete the process of preparing to start rendering services in life insurance by late 2010. They also plan to start the active phase of sales from 2011.
"The company's staff is fully prepared to begin the sales of insurance policies, as their training started in the summer," Babayev said. "We formed a staff of professionals, in particular insurance actuaries and sales specialists."
Babayev said the company already has potential customers, who are interested in insuring their workers against accidents and occupational diseases at work. At present they are getting familiarized with the insurance terms.
Babayev believes that the sale of insurance policies for compulsory life insurance will create a basis for the development of life insurance in the country on a voluntary basis in the future. He feels that the population's trust in this type of insurance will increase, as well as awareness of its importance.
At present, the company is permitted to render services on compulsory insurance against disability which results from occupational diseases and accidents at the workplace, as well as two types of voluntary services.
Babayev believes that after a certain time, and as a result of the active introduction of compulsory insurance, new specialized products will be available on the country's life insurance market.
"The market analysis, as well as introducing clarity into the population's demand for various types of life insurance takes some time," Babayev said.
According to him, employers have already appealed to the company to conclude an agreement on compulsory insurance against disability resulting from occupational diseases and accidents at work. He noted further that employers, held liable under the Civil Code on compulsory insurance, are themselves motivated to conclude these agreements. In terms of the applicable law, payment of 150,000 manat could go to the family of a worker. In case of a lack of insurance, this payment must be made by the employer.
Qala Heyat was created based on the reorganization of Qala Sigorta's activity. According to Babayev, the decision by the shareholders is due to the increasing demand for a life insurance market, given the small number of participants.
At present, the company's authorized capital is at 3.5 million manat. This amount is likely to increase in future at the expense of shareholders' funds, Babayev said.
The company intends to invest the funds accumulated at the expense of life insurance in state securities, as well as bank deposits. With an increase in the company's opportunities, the probability of investments in shares is not excluded, and even in creating separate companies to render financial services.
The Finance Ministry issued a license to JSC "Qala Sigorta" to conduct insurance activities on July 31, 2008. The State Insurance service issued a license to Qala Heyat on Nov.30, 2010.
The founder of the company is the only reinsurance company in Azerbaijan, AZRE Tekrarsigorta. Their authorized capital stands at 3.5 million manat.
The official exchange rate on Dec. 25 is 0.7985 manat.