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.

EIB funds construction project in Georgia
EIB funds construction project in Georgia
Volume of deposits in national currency greatly increases in Azerbaijan
Volume of deposits in national currency greatly increases in Azerbaijan
Azerbaijan names economy sector with biggest share of credit investments
Azerbaijan names economy sector with biggest share of credit investments
Loading Bars
Latest
Earthquake jolts Indonesia's Bali, no tsunami alert issued
Azerbaijani president attends ceremony to launch newly renovated “Aghjabadi-2” power substation (PHOTO/VIDEO)
Azerbaijani president inaugurates grain processing plant in Aghjabadi (PHOTO/VIDEO)
Kazakhstan increases import of chemicals from Turkey
Azerbaijani president arrives in Aghjabadi district for visit (PHOTO/VIDEO)
Spain reports first new COVID-19 death since Sunday
Azerbaijani Cabinet of Ministers: Borders remain closed due to current situation
EIB funds construction project in Georgia
TABIB: If people abide by quarantine regime rules, restrictions not to be further introduced in Azerbaijan
Georgia prepares for peach and nectarine harvesting season
Azerbaijani PM to reveal details related to restrictions
Volume of deposits in national currency greatly increases in Azerbaijan
Activity of Facebook users in Azerbaijan keeps growing
Operational Headquarters: Going outside may be banned in some Azerbaijani cities
TABIB: Shopping malls planned to be fully closed on weekend in Azerbaijan
Azerbaijan names economy sector with biggest share of credit investments
Kazakhstan to up its gross agricultural output before year-end
Azerbaijani Cabinet of Ministers:Tightening quarantine regime rules under discussion
Ministry of transport eyes transferring airports of Uzbekistan to foreign investors
Timeframe for orbiting Turkish satellites Turksat 5A, Turksat 6A announced
Azerbaijan discloses data on collection of premiums in insurance market in April 2020
Bank of Georgia launches campaign to support farmers
Iran aims to boost export of mineral products
Azerbaijan confirms 325 new COVID-19 cases
Azerbaijani Azexport portal notes growing export orders after softening quarantine regime
Azerbaijan State Tax Service talks concessions made to taxpayers
Azexport portal talks availability of Facebook Shop in Azerbaijan
Azerbaijani president attends ceremony to launch drinking water supply and sewerage systems in Aghjabadi (PHOTO/VIDEO)
Azerbaijani president inaugurates “ASAN xidmet” center in Aghjabadi (PHOTO/VIDEO)
Azerbaijani president attends ceremony to start grain harvest in Aghjabadi (PHOTO/VIDEO)
Export of carpets from Turkey abroad drops two-fold in May 2020
Association of Uzbek textile manufacturers talks about progress of industry
Travel by railway remains suspended in Georgia
Ambassadors of EU member states interested in reopening tourism sector in Georgia
Turkey's export of defense products from January through May 2020 declines
Magnitude 6.8 earthquake hits northern Chile, copper mines say unaffected
France says latest U.S. trade threats over digital tax a 'contradiction'
SOCAR subsidiary starts producing raw material for medical masks fabric
Azercell introduces new “Mobile TV” service for kids
Trump administration set to bar Chinese passenger carriers from flying to U.S.
Investments help Kazakhstan raise agriculture goods processing
Turkmenistan's Dashoguz region growing foreign potatoes
Italy may use new Kazakhstan-tested platform to track quarantine compliance
Azerbaijani president visits military unit in Aghdam (PHOTO/VIDEO)
Baku Stock Exchange pays interest on bonds of Azerbaijan Mortgage and Credit Guarantee Fund
Georgia, Estonia discuss cooperation in field of transportation, tourism
Agriculture sector digitalization leads to significant money savings in Kazakhstan
Turkey's export of cars abroad from January through May 2020 slips
Airlines cut fares to help boost May traffic
Export of Turkey's export of ready-made clothes down compared to 2019
Georgia expects average cherry crop
Netherlands, Azerbaijan could create train connection
Azerbaijan developing new alternative energy project
Saudi, Russia reach deal on oil cuts, raising pressure for compliance
Uzbek textile products in great demand on French market
German bans digital doppelganger passport photos
Textile industry of Uzbekistan - fastest growing sector of country's economy
Quarantine regime to be strengthened in Kazakhstan’s Almaty city
Azerbaijani enterprise starts exporting canned goods to US
EU implements new projects to support vulnerable groups in Georgia
Payments of insurance claims by four Azerbaijani insurers decline
Export of Turkey's leather products to int'l markets down
Azerbaijani Azexport portal talks Facebook Shops integration
Kazakhstan's Samruk-Kazyna decreases its share in Kazatomprom
ADB continues to support Azerbaijan’s efforts to diversify its energy mix
Turkmenistan’s Turkmenhimiya opens tender to buy various equipment, spare vehicle parts
Turkey's export of wood, furniture abroad from January through May 2020 plummets
Coronavirus negatively affects almost all sectors of Georgian economy
Kazakhstan records decrease in money transfer volume
Oil, gas exploration work to be held throughout Turkey
Uzbek-Korean JV opens tender for procurement of pump repair kit
Hajj pilgrimage from Azerbaijan may not take place this year
Azerbaijan's Agricultural Insurance Fund talks managing company branding
Azerbaijan's pomegranate association aims to increase export volumes
BoE says advising banks to prepare for possible no-deal Brexit
16 insurance companies increase payment of insurance claims in Azerbaijan
Belgium to open bars and restaurants but not nightclubs
Azerbaijani president attends inauguration of Tartar branch of “Azerkhalcha” OJSC (PHOTO/VIDEO)
GNERC: Over 20% of business entities provided with internet services in Georgia
Cargo transshipment through Turkey's Antalya port disclosed
Turkey's export of grain, legumes to int'l markets marginally up
Exhibition of historical Baku photos opens on Baku boulevard (PHOTO)
Azerbaijani pomegranate association reveals new export targets
Turkey's export to D-8 countries down from Jan. through Apr. 2020
Turkmenistan’s Dashoguz region completing preparations for wheat harvesting
Sumgait Technologies Park talks export of aluminum to Central Asia
Cargo transshipment from Greece via Turkish ports disclosed
State share of Kafolat Insurance Company sold in Uzbekistan
Azerbaijan's Central Bank talks problematic insurance companies
Uzbek Ipak Yuli Bank, EBRD increasing their support to entrepreneurs of Uzbekistan
Uzbek-Korean JV buys sockets, switches via tender
Bank loans on rise in Azerbaijan
Turkey, US trade turnover suffers drop in April 2020
Azerbaijani president opens newly renovated highway (PHOTO/VIDEO)
Turkmenistan evaluates new varieties of cotton
Net revenue of Kazakhstan's KazMunayGas plummets in 1Q2020
Turkish ministry reveals cargo transshipment through local Hopa port
Azerbaijani president launches newly renovated 'Tartar' power substation (PHOTO/VIDEO)
Chamber of Commerce talks problems created by ministries' merger in Iran
Coronavirus body count in Iran surpasses 8,000
All news