Market participant: Azerbaijan observes demand for traditional foreign life insurance products

Business Materials 7 January 2011 12:10 (UTC +04:00)

Azerbaijan, Baku, Jan. 7 / Trend U.Ismayilova /

The process of traditional life insurance, though slowly, will develop in Azerbaijan, Azerbaijani Insurance Company Pasha Sigorta's CEO Nofel Rzayev said on Friday.

"Today, Azerbaijan has a customer base that needs a life insurance policy," Rzayev said.

He said the insurance market of the country observes a demand for traditional life insurance products, which are used in foreign countries.

"Even today one can apply these services in the local market, as well as to apply them in conjunction with foreign insurers," Rzayev added.

The appliance of compulsory insurance on labor ability loss in production also contributes to the development of the market for life insurance. Its use is mandatory, which means that serious administrative sanctions will be applied in respect of employers who refuse to insurance employees. Sanctions against employers determined in the amount of 1,500-3,000 manat.

In July 2010, Azerbaijani President Ilham Aliyev approved the law on compulsory insurance on labor ability loss in production.

At present, there are two specialized companies for life insurance in Azerbaijan, namely Ateshgah Heyat and Qala Heyat. JSC Pasha Heyat Sigorta is expected to receive a license to start insurance activities in January.

The official exchange rate is 0.7977 manat to $1 on Jan. 7.