Life insurance creates potential for serious amount of cheap money in Azerbaijan
Azerbaijan, Baku, Feb. 7 / Trend U.Ismayilova /
The life Insurance should be developed in Azerbaijan and a new Law On compulsory insurance on labor ability loss in production is a good incentive for the development of life insurance companies, Chairman of the Supervisory Board of the Azerbaijani Insurers Association Azer Aliyev said.
"Unfortunately, to date life insurance is not in special demand in Azerbaijan," Aliyev said.
Aliyev said the share of life insurance in the Azerbaijani insurance market is around one percent, despite the fact that the figure is 60 percent in the developed countries compared to 40 percent for insurance other than life. In some countries it even goes up to 70 percent.
This kind of insurance for a long time was not demanded in Azerbaijan, Aliyev said.
"Life insurance is a great tool and guarantee for the financial security of the citizen and his family. In addition, the development of this type of insurance has a positive effect on the economy, and creates the potential for the emergence of a serious amount of cheap money ," Aliyev said.
Aliyev said today, Azerbaijan has a great legal framework for the development of life insurance.
For example, the insured person by entering into an insurance contract for at least three years old accumulates in accounts not only money allocated under accumulation, but all the taxes on that amount, including all social contributions to the pension fund.
A level of professionalism and insurers education in this area own will play a significant role in the development of life insurance, Aliyev said. Employees of companies that realize life insurance policies in the first place, should not act as sellers, but consultants.
"This type of insurance is of great social importance. And if the companies involved in this type of insurance will behave incorrectly and make payments with breach of contract or law, it can lead to social discontent and create negative attitudes and distrust among the population," Aliyev said.
There are 27 insurance and one reinsurance company in Azerbaijan. Only two companies in the country are engaged exclusively in life insurance - Ateshgah Heyat and Qala Heyat.