Expert: It is necessary to develop voluntary types of insurance in Azerbaijan

Business Materials 30 August 2017 19:33 (UTC +04:00)

Baku, Azerbaijan, Aug. 30

By Anvar Mammadov – Trend:

It is necessary to develop voluntary types of insurance in Azerbaijan, Khayal Mammadkhanli, president of the training and consulting center “Consultant”, insurance expert, told Trend on Aug. 30.

“Current trends in the insurance market of Azerbaijan are reduced to the fact that, only the compulsory types of insurance are being developed. At the same time, many interesting products on voluntary insurance are actually overlooked,” noted Mammadkhanli.

As a result, he continued, the fees for the comprehensive car insurance policies (CASCO) are decreasing from year to year. Voluntary medical insurance is also decreasing, which is primarily related to a reduction in the budget of big corporate clients for this type of insurance.

“Three or four years ago, it was forecasted that by 2018, the total insurance premiums in the market will exceed one billion manats. However, the growth of the insurance market is insignificant in the last three years, and it is already clear that the market will not reach the forecasted indicators,” added the expert.

He went on to say that, first of all, the companies themselves should be interested in increasing the interest in the voluntary types of insurance.

According to Azerbaijan’s Financial Market Supervisory Authority, premiums on the voluntary types of insurance totaled at 193.8 million manats, while the payment of claims amounted to 98.57 million manats in 1H17.