Azerbaijan, Baku, Dec. 27 / Trend U.Ismayilova /
Azerbaijan's life insurance company, Qala Heyat, is negotiating with international financial institutions interested in the development of life insurance in Azerbaijan through the occurrence on the market in the future, Company CEO Abbas Babayev told Trend.
"The negotiations with international institutions are conducted by the principal shareholder of the company, the only reinsurance company in Azerbaijan Azre Tekrarsigorta," Babayev said.
The studies on the life insurance market in the country, he said, showed that this segment has great potential for development. Currently, the share of life insurance in the overall portfolio of the insurance premiums is less than one percent, but studies show that a similar trend has been observed in all the developing markets of life insurance.
"The state support becomes an additional impetus for the development of life insurance in this country and a clear example is the introduction of the Law on compulsory insurance of labor ability loss in production, as well as amendments to the Law on Social Insurance and the Tax Code, providing tax exemptions [exemption of the insurance premium from income tax and social insurance contributions] for life insurance for more than three years," Babayev said.
By this, the state encouraged the development of the life insurance market in Azerbaijan with Qala Heyat intending to cooperate with all concerned agencies and companies in the country, he said.
"We intend to cooperate with Atesgah Heyat, a single competitor in this market for today, as well as with the Azerbaijani Insurers Association and the Finance Ministry in conducting joint and active education in this type of insurance to inform the public, as well as employers," Babayev said.
As part of promoting life insurance, the company will also conduct outreach training sessions in the region.
The Finance Ministry issued a license to JSC "Qala Sigorta" for conducting insurance activities on July 31, 2008. The State Insurance service issued license to Qala Heyat on Nov. 30, 2010.
Azre Tekrarsigorta is fhe founder of the company, which is the only reinsurance provider in Azerbaijan, comprising an authorized capital of 3.5 million manat.