Azerbaijan, Baku, Feb. 3 /Trend, U.Ismaylova/
The potential of the insurance market in Azerbaijan is estimated at one billion manat, the chairman of the supervisory board of the Insurers Association of Azerbaijan Azer Aliyev said.
"Over the next two years, the premiums of the companies should be doubled to $400 million compared to the current almost $200 million (155 million manat at the end of 2010)," said Aliyev.
According to him, premiums of insurers will grow to $400 million primarily due to compulsory insurance, increase of service quality and development of insurance culture among the population.
Regarding 2011, Aliyev said insurance industry will be a watershed this year. The Association intends to take more serious steps to inform the public about insurance.
According to him, the new compulsory insurance on labor ability loss in production will seriously change public opinion on these services, people will be more serious about it.
According to Aliyev, new services will change the amount of the insurance market, which will rise by 20 percent or 30 million manat on average per year. Market growth will also contribute to the development of insurance companies, the country's economy.
In July 2010, Azerbaijani President Ilham Aliyev approved the law on compulsory insurance on labor ability loss in production.
According to the World Labor Organization, accidents at work kill 2.3 million people each year worldwide; three times more people are injured.
In Azerbaijan, in 2007, there had been recorded 259 accidents, 128 facts of death, 202 facts of injury, in 2008 - 255 accidents, 79 deaths and 212 facts of injury, in 2009 - 250 accidents, 69 deaths and 218 injuries.
At present, there are only two companies specializing in life insurance - Atesgah Heyat and Qala Heyat. These companies may not cover all physical and legal entities operating in the country. JSC Pasha Heyat Sigorta is expected to receive a license to start insurance activities in January.