Azerbaijani insurer gets experience in cosmic risks

Business Materials 12 July 2011 17:40 (UTC +04:00)

Azerbaijan, Baku, July 12 / Trend I. Khalilova /

The Azerbaijani Pasha Sıgorta insurance company began insuring space risks together with well-known reinsurers, CEO Nofel Rzayev told Trend.

"The insurance policies have not been issued for Azerbaijani risks yet," Rzayev said. "There were small insurance packages. We have worked as advisers to brokers, particularly under the U.S. insurance broker Marsh, which served cosmic risks, simply to gain experience."

The State Insurance Supervision Service has issued a license for Pasa Sıgorta to insure space risks and liability of owners of airports and air traffic control in March 2010.

The Azerbaijani Communications and IT Ministry plans to put into the orbit the first national telecommunication satellite Azerspace. It is planned to be launched in late 2012.

"We are not informed whether the Azerbaijani companies will participate in insurance of Azerspace satellite," Rzayev said.

Many insurance companies were interested in this issue in Azerbaijan.
But there is uncertainty with the choice of a local insurer.

The ministry has signed a contract with the Orbital Sciences Corporation to produce the satellite.

Azerspace is designed to provide digital broadcasting, Internet access, data transmission, VSAT multi-service networks, and governmental communications. Its service area will cover Europe, Central Asia and Africa.

The project will allow new space systems technologies to be introduced in the telecommunications and communications sectors, including the Internet access.

Azerbaijan annually spends millions of dollars on renting foreign satellite transponders for communications and broadcasting. Launching a national satellite will cut costs. The payback period is about five-seven years.

Azerbaijan's capital investment in the project is approximately 319 million manat; 127 million will be spent on operating costs. The payback period is six years, and the income will reach 176 million manat.

Pasha Sıgorta is a member of the group Pasha Holding. It offers 30 types of insurance services to corporate and individual clients. The company authorized capital hits 30 million manat.