Azerbaijan’s only state insurance company does not plan to enter life-insurance market

Business Materials 5 January 2011 17:07

Azerbaijan, Baku, Jan.5 / Trend U. Ismayilova /

The only state insurance company in Azerbaijan, AzerSigorta, does not plan to render life insurance services, the company board's Deputy Chairman Aftandil Hajiyev said today.

"AzerSigorta intends in the near future to carry out activity only in the direction of providing services on insurance of other things, but not life insurance," Hajiyev said.

According to the insurance legislation, from March 2011 only specialized companies can provide life insurance services. Accordingly, non-life companies will be deprived of this right.

"To create a certain company free funds are needed, and as a result of the end of last year AzerSigorta didn't possess such a profit that could be allocated for starting life insurance," Hajiyev said.

A capital worth five million manat is needed to be formed to again establish insurance companies.

At present, only two life-companies, Atesgah Heyat and Qala Heyat, operate in Azerbaijan. Another company Pasha Heyat is expected to obtain a license soon.

State insurance company AzerSigorta was founded in 1992. After the collapse of the Soviet Union, it was set up on the basis of former state insurance board. It has 80 insurance agencies in all cities and districts of the republic, which\renders services to 10 mandatory and 27 voluntary types of insurance. The company's authorized capital hits four million manat.

The official exchange rate on Jan.5 was 0.7977 manat to $1.