Azerbaijan life insurance market increases by 56%
Baku, Azerbaijan, Aug.15
The three companies with the right to engage in life insurance in Azerbaijan - "Pasha Hayat", "Atashgah Hayat" and "Gala Hayat", collected 63.5 million AZN in January-July 2014 for all types of life-insurance, which exceeds the same period of last year by 56 percent (22.83 million AZN), says the report of Azerbaijan Insurers Association (AIA) on Aug. 14.
The share of life insurance awards in the total amount of fees of insurance companies existing in the country amounted to 25.2 percent.
Of the total amount, 51.6 percent or 32.8 million AZN fell to survivor life insurance.
Charges for insurance against accidents at work amounted to 21 million AZN (33 percent of total), life insurance in case of death - 9.5 million AZN (15 percent). The remainder was provided by a life insurance from incurable diseases (239,000 azn), which was an increase by 2.8 times throughout July 2014.
In 1 HY 2014 for all types of life insurance payments have been made in the amount of 4.8 million AZN, which is approximately 94 percent (2.3 million AZN) more than in the same period of last year. The share of these payments in total payments of the insurance market amounted to 6.2 percent.
Compensation insurance on survival amounted to 53.1 percent, or 2.55 million AZN out of total amount of payments for life insurance.
Life insurance on accidents at work amounted to 1.74 million AZN (36.2 percent of total payments), life insurance in case of death - 0.5 million AZN (10.4 percent). Insurance payments from incurable diseases were carried out in June for the first time, making a total of 12,500 AZN. Payments of this type of insurance have not been made in July.
During the reporting period for each 100 AZN, fees for life insurance payments of 7.56 AZN were carried out, whereas in 1 HY 2013 the figure was 6.07 AZN.
Life-insurance market in the country runs its history from 2011. Life insurance market, as well as demand for these types of insurance products is rapidly growing. The head of Azerbaijan Insurers Association Orhan Bayramov said that the number of customer calls to the insurance companies has increased significantly.
"In developed countries, this type of insurance has long been a "driving force" of the market. I think that the same situation will occur in our country, perhaps by the end of next year, life-insurance will become the most popular of the products offered," Bayramov told Trend.
He said that the reason for this increase was not only in the success of campaign activities of insurers, but also in the fact that the model of product life-insurance was different from other areas.
"For example, if you are insured by CASCO and no accidents happened during the term of the contract of insurance your money will not be reimbursed. Endowment life insurance at this point of view is much more profitable for the customer," said Bayramov.
The official exchange rate for August 14 is 0,7843 AZN / USD.