Compulsory life insurance market may be covered by 70 percent in Azerbaijan by late 2011

Azerbaijan, Baku, July 18 / Trend A. Akhundov /

At present, about 500,000 people have been insured on compulsory insurance against disability, resulting from occupational diseases and accidents at work in Azerbaijan, the Chairman of the Atesgah Heyat Board Akbar Madatli said.

The use of the labor insurance service began in December 2010 with about 14,000 enterprises insuring workers.

At present, the share of compulsory life insurance has reached 90 percent.

According to official statistics, as of June 1 there have been 1.362 million hired employees and about 400,000 registered private people dealing with entrepreneurship.

There are three life insurance companies that are licensed to provide services of this kind in Azerbaijan - Atesgah Heyat, Qala Heyat and Pasa Həyat.

"Only our company [Atesgah Heyat] insured more than 200,000 employees", he said. "We have concluded more than 6,000 contracts in the first half of the year."

Deputy Chairman of Pasa Heyat, Niyaz Ismailov, said that about 160,000 people have become company clients.

"We have already signed contracts with about 300 legal entities on obligatory accidental insurance", Ismailov said.

Chairman of AzRe Reinsurance sole reinsurance company's board and the Founder of Qala Heyat, Vusal Abbasov said that about 7,500 business entities became clients of Qala Həyat.

He could not relate the exact number of physical entities who are clients of the company for this type of insurance.

Despite the fact that Pasa Heyat is behind most life-insurance companies in terms of clientele, legal entities are insured with compulsory insurance against disability in the workplace. In terms of fees, the company is a leader in the Azerbaijani insurance market.

According to the State Insurance Supervision Service under the Azerbaijani Ministry of Finance, Pasa Heyat collected premiums amounting to 6.218 million manat in the first half of the year, taking 43 percent of the life insurance market and 6.33 percent of the total insurance market in the country. Atesgah Heyat Company collected 4.613 million manat. About 31.9 and 4.69 percent fall to the company. Qala Heyat collected 3.542 million manat. About 24.5 and 3.6 percent fall to this company.

About 0.6 percent of the life insurance market (worth about 85,000 manat) is given to portfolios of life-insurance companies which provide similar services before a three-year moratorium expires in late March this year. The company indicates that only specialized companies deal with life insurance.

The total amount of premiums for voluntary life insurance amounted to 1.52 million manat. The Azerbaijani insurance companies' premium for compulsory insurance and disability, resulting from occupational diseases and accidents at work, was 12.938 million manat in the first half of 2011.

The potential market for compulsory insurance is estimated at about 30 million manat. The existing three companies have covered almost half of the market in six months.
However, there was a sharp slowdown in fees for compulsory insurance against accidents in June.

June fees exceeded that of January-May by 8.35 percent, while fees in May increased by 37.12 percent compared to January-April. In April fees rose by 46.13 percent compared to January-March. In March the figure exceeded threefold compared to January and February.

The chairman of the insurance company Qarant Sıgorta Vagif Hasanov said that the peak level of fees of Azerbaijani life insurance companies for compulsory insurance fell behind.
"First, insurance companies began insuring employees in large companies", Hasanov said. "At present, small companies are dealing with this."

The chairman of Atesgah Həyat company Akbar Madatli said that three companies will cover no more than 70 percent of the potential market of compulsory life insurance by late 2011.

"We expect to get 30 percent of the total life insurance market," Madatli said.
Madatli said that these companies risk losing a part of the market after new life insurance companies are established.

"A policyholder may apply to another insurer at any time by breaking the contract and sending a written notice 30 days in advance," Madatli said. "Each company fights for its customers. We will try to keep our clients in the future. We must adhere to the quality standards while rendering the services, by making payments on time and maintaining services at a proper level. Of course, there are some political points on which they can apply to one or another insurance company. But that does not mean it is a very small amount? Basically, the quality of service plays a key role."

At present, the State Insurance Supervision Service is considering appeals for establishing a life insurance company. The appeals were received from AzSıgorta, Alfa Sıgorta, Ata Sıgorta, and Standard Insurance. The International Insurance Company and "Azerbaycan Senaye Sıgorta" have similar plans.

Weekly review of Azerbaijani precious metals market
Weekly review of Azerbaijani precious metals market
Iran’s Bahar Azadi gold coin price continues to increase
Iran’s Bahar Azadi gold coin price continues to increase
Uzbekistan notes significant increase in bank cash turnover in 4M2021
Uzbekistan notes significant increase in bank cash turnover in 4M2021
Loading Bars
Latest
Oil prices inch higher as traders eye U.S. pipeline shutdown
Palestinians report several killed in Israeli air raids on Gaza
Biden confident he will meet with Putin
Over 1.6mln receive COVID-19 vaccine in Kazakhstan
Azerbaijan's import of cars from Turkey drops
Iran makes advanced industrial flame arrester
Putin says 21.5 mln Russians vaccinated against COVID-19
U.S. Treasury launches access to $350 billion in state/local COVID-19 aid
President Ilham Aliyev receives delegation led by Russian foreign minister (PHOTO)
Global COVID-19 cases, deaths reach plateau - WHO
Electric, hybrid car sales in Turkey surge over 200% in 4 months
Georgian, North Macedonian Presidents sign visa-free agreement
Second component of Sputnik V vaccine delivered to Kyrgyzstan
Iran produces oil-based ozone generator
India COVID cases hold close to record highs as calls widen for national lockdown
USAID’s focus to remain on modernization of energy sector in Kazakhstan
China-made meteorological satellite for dawn-dusk orbit passes review
Saudi Arabia's GDP contracts 3.3% in Q1 on oil output, non-oil economy recovers
Azerbaijan purchasing new equipment to speed up mine clearance on liberated lands (VIDEO)
Iran's Energy Exchange announces products to be on sale on May 11
Weekly review of Azerbaijani precious metals market
Activities in Iran’s Khorramshahr port climb
Iran’s Bahar Azadi gold coin price continues to increase
New facility to be put into operation in Iran’s electricity sector
Iran boosts production, export of greens and vegetables
Azerbaijan shares data on number of vaccinated citizens for May 10
Iran's ICOFC to develop two gas fields
National leader Heydar Aliyev`s 98th anniversary marked at parliament (PHOTO)
Program of Russian FM's visit to Azerbaijan unveiled
Azerbaijan confirms 371 more COVID-19 cases, 892 recoveries
Public reps of Azerbaijan paying tribute to late National Leader Heydar Aliyev (PHOTO)
Mine-clearing operations begin in Azerbaijan's liberated villages
Iran talks IAEA monitoring cameras at nuclear sites
Presidents of Russia, Azerbaijan hold phone conversation
Int'l organizations notified about Armenia's crimes against Azerbaijani civilians - Azerbaijan's prosecutor general
Criminal cases against Armenian terrorists who fought in Karabakh nearing completion - Prosecutor General of Azerbaijan
Uzbekistan eyes ratifying two more conventions of International Labor Organization
Uzbek mining and metallurgical complex exceeds export plan by half
Cargo movements in Iran’s Imam Khomeini port up
Iran reveals details of saffron exports
Various results achieved in Vienna every day – Iran’s MFA
Oil gains after cyberattack forces shutdown of U.S. fuel pipelines
Heydar Aliyev saved independent Azerbaijan from disappearing from political map - Russian expert
Iran, Saudi Arabia conduct both bilateral, regional talks – Iran's MFA
Registration of presidential candidates starts in Iran
Volume of loaded, unloaded cargo in Iranian ports grows
President Ilham Aliyev ends visit to Nakhchivan Autonomous Republic (PHOTO)
Uzbekistan notes significant increase in bank cash turnover in 4M2021
Uzbekneftegaz reveals indicators of oil and gas production and processing in 4M2021
Uzbekistan and France sign cooperation program
Uzbekistan Helicopters LLC opens tender for refueling vehicle
Political will of Heydar Aliyev bearing fruit - colonel general
Carbon price to rise, as governments pursue deeper decarbonisation strategies
Iran expects to increase vaccination
President Ilham Aliyev interviewed by Azerbaijan Television (PHOTO)
Death toll from COVID-19 exceeds 75,000 people
Number of confirmed coronavirus cases in Russia rises by 8,465 per day
President Ilham Aliyev views Ordubad railway station (PHOTO)
President Aliyev attends launch of project for reconstruction of drinking water supply, sewerage systems in Ordubad (PHOTO)
President Ilham Aliyev views construction of Ordubad Hydroelectric Power Plant (PHOTO)
ERIELL to work on wells at field in Uzbekistan’s Karakalpakstan
First Vice President of Azerbaijan shares publication on occasion of 98th anniversary of birth of National Leader Heydar Aliyev
President Ilham Aliyev attends inauguration of Julfa-Ordubad highway (PHOTO)
Uzbekistan’s 1Q2021 tomatoes export revealed
Turkey sees increase in cement exports to Azerbaijan
Kazakhstan-Israel trade plummets y-o-y
Uzbekistan to connect number of small industrial zones to utility networks
Weekly review of Azerbaijani currency market
ACG oil transshipment from Ceyhan terminal exceeds 70 mb YTD
EBRD, EIB, Proparco to fund construction of solar power plant in Uzbekistan’s Samarkand
President Ilham Aliyev attends opening of Artificial Insemination Center in Nakhchivan (PHOTO)
Azerbaijan creating 'green' energy zone in liberated Karabakh
President Ilham Aliyev attends opening of Nakhchivan Garrison Central Hospital (PHOTO)
President Ilham Aliyev attended inauguration of Nakhchivan branch of “Azerkhalcha” OJSC (PHOTO)
Weekly review of Azerbaijani oil market
Bank of Israel cuts government bond purchases
President Ilham Aliyev viewed construction of “ASAN xidmət” Center in Nakhchivan (PHOTO)
Turkey's 4M2021 steel exports to Turkmenistan shrink
Armenian Parliament to reconsider issue of electing new prime minister
Iran increases sturgeon farming
World's largest cargo plane with UK Covid aid takes off for India
President Ilham Aliyev visits statue of national leader Heydar Aliyev in Nakhchivan (PHOTO)
India to recruit 400 retired medical officers of AMC, SSC; Defence Ministry issues orders
Iran eyes to expand ties Turkmenistan
Azerbaijani president visits graves of martyrs of Patriotic War at Nakhchivan city cemetery (PHOTO)
Indian-Led Ground-Breaking Cancer Test Hopes To Launch This Year
President Aliyev attends opening of military aerodrome of Special Combined Arms Army (PHOTO)
Iran to renovate public transport fleet
Iranian water and electricity companies to enter EAEU market
Artists of Int'l Arts Festival create 'Kharybulbul' model in Azerbaijan's liberated lands (PHOTO)
Indian and Indonesian navies carry out military drill in southern Arabian Sea
President Aliyev attends presentation of new runway at Nakhchivan International Airport (PHOTO)
Iran continues investments for dev't of postal network
Iran, Serbia to expand ties by preferential trade agreement
Iran to inaugurate new national housing units
Iran's NIGTC announces tender for intelligent pipes
Iran to return to its full oil production capacity by early 2023, says JP Morgan
India, EU hold virtual summit to boost overall ties
Stand Firmly With India In This Challenging Time: European Commission Chief
JP Morgan expects global oil demand to surge over summer
All news