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Dependence of Azerbaijani market on banking business reduced

Business Materials 27 November 2012 23:15 (UTC +04:00)

Azerbaijan, Baku, Nov 27 /Trend A.Akhundov/

Reduce in dependence of the Azerbaijani insurance market on the products offered in parallel with banking services is observed in 2012, head of the State Insurance Supervision Service under the Ministry of Finance Namik Khalilov told reporters on Tuesday.

"The insurance market is connected to the bank one, but the dependence of the insurance market on banking business reduced this year due to the development of compulsory insurance and other factors. This dependence will decrease with the development of retail, massive sales," Khalilov said.

He added that at the same time, banks themselves should be interested in it, as sale of insurance products is one of the main sources of non-interest income of banks as in international practice,"

"It is very important for the banks, especially if take into account that most of the revenue for most of our banks today - is interest income" Khalilov said.

There are 28 insurance and one reinsurance company in Azerbaijan.

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