Azerbaijan, Baku, March 17 / Trend U.Ismayilova /
The coverage of persons engaged in employment in Azerbaijan with compulsory insurance on labor ability loss in production will hit 80 percent by late 2011, Azerbaijani Finance Ministry's State Insurance Supervision Service Head Namig Khalilov told journalists.
"Premiums on this type of insurance is gradually increasing, that is, the figure exceeded the January figure in February and in March it will be higher than in January- February," Khalilov said.
He said an important measure for the development of this type of insurance is that new insurance companies are involved in the process, policyholders and the company already began to emerge in the regions.
"If this law would not be, there would not be so many candidates for opening of life insurance companies, there would be no penetration of life insurance services to the regions ," Khalilov said.
Regarding the number of life insurance companies in the market, Khalilov said 20 life insurance companies may exist in the market, but they can work in private circle and not be able to cover the entire capacity. But it is also possible only 5-6 companies that will actively provide these services, covering the entire customer base by attracting new customers, etc.
To date, only three life insurance companies that are licensed to provide services for compulsory insurance on labor ability loss in production operate in Azerbaijan; they are Ateshgah Heyat, Qala Heyat and Pasha Heyat. The Azerbaijani insurance companies' premiums on compulsory insurance on labor ability loss in production amounted to 1.957.090.17 manat in January -February 2011, the Azerbaijani Finance Ministry reported.
The State Insurance Supervision Service is currently considering several proposals to establish life insurance companies.