Market participant: Low public awareness is main challenge of Azerbaijani insurance market

Business Materials 12 January 2011 14:57 (UTC +04:00)

Azerbaijan, Baku, Jan. 12 / Trend U.Ismayilova /

The Azerbaijani insurance market's main problem is low public awareness of insurance services, Adviser to the Atesgah Insurance Company Chairman and former head of the State Insurance Supervision Service under the Cabinet of Azerbaijan Azer Jafarov said in an interview with the official press.

"In recent years, culture of insurance, though slowly, but has been growing in Azerbaijan. But despite this, we still have a lot to do for the development of the market," Jafarov said.

Jafarov said increase of awareness, as well as strengthening of advocacy for insurance, may be solution for the problem.

"I think, the youth should be involved in this more than others, as they will work and live in the 21st century and need insurance," Jafarov said.

The process of informing, Jafarov said, should start in high schools by conducting a lesson on the subject of "Insurance" at least once a week, so that the youth had a primary general overview on this topic. In the future this subject should be introduced in universities. The media also can be an important impetus for the development of insurance.

Transparency in this field also may be another way of solving the problem. Population should not face the problem of payment of insurance cases, Jafarov said.

There are 27 insurance companies and one reinsurance company in Azerbaijan. Total premiums of all insurance companies amounted to 139.82 million manat in January-November, with payments equaling 45.48 million manat.

The official exchange rate is 0.7976 manat to $1 Jan. 12.