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Not even 10% of 5,000 licensed insurance agents actively operate in Azerbaijan

Business Materials 9 July 2019 19:18 (UTC +04:00)

Baku, Azerbaijan, July 9

By Kheyraddin Nasirzade – Trend:

Of the 5,000 licensed insurance agents and intermediaries in Azerbaijan, 500 do not actively operate, Khayal Mammadkhanli, expert in the field of insurance and chairman of the committee of insurance intermediaries of the Azerbaijan Insurers Association, told Trend.

According to Mammadkhanli, most of the said agents lack sufficient professional training. As a result, in pursuit of commissions, they offered potential customers only one product that is most in demand on the market, which is the policy of compulsory third party liability insurance of motor vehicles.

Over time, when the insurance market expanded and new companies appeared, the natural decline in the number of policies per agent began. In turn, this led to a decrease in their commission.

In addition, some insurance products have no commission at all. As a result, due to the lack of professional qualifications, and the lack of sufficient awareness of other types of insurance products, the number of agents and intermediaries began to decline. Therefore, the expert believes, agents should improve their knowledge and take into account the trends in the insurance market.

Mammadkhanli also believes that Azerbaijani insurance companies should use the experience of developed countries, where insurance agents and brokers undergo training and serious vocational education. Such specialists are in great demand because, according to him, it is they who perform the main work of attracting customers and expanding the scope of activities.

Follow the author on Twitter: @1nasirzade

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