Expert: Tightening of Legislation to Develop Insurance Market of Azerbaijan Necessary
Azerbaijan, Baku / corr. Trend U.Ismaylova / The insurance expert, Deputy Director-General of Pasha Sigorta Company, Nofel Rzayev, stated that the legislation needs to be tightened for the insurance market of Azerbaijan to develop.
According to him, there are three key problems in the insurance market of Azerbaijan, namely
- lack of professionalism within the insurance companies;
- insufficient regulation of obligatory types of insurance;
- violation of the level of percentage of agent commissions.
"Speaking of the professionalism of the companies, it is possible to highlight only a few companies out of the 29, which are aiming to correspond at a professional level.However, there are two to three companies who are spoiling the general reputation of the market," Rzayev said.
With regards to the obligatory type of insurance, there are serious problems here. As an example, obligatory motor insurance for owners of automobile transport is the most important of all insurances worldwide. But in Azerbaijan, due to its incorrect regulation by several State bodies, is not at an acceptable level. "However, I support the obligatory insurance against fire which is now regulated by the Ministry of Emergency Situations of Azerbaijan. For this reason, nobody is able to avoid the insurance against fire." he said.
Another problem within the insurance market of Azerbaijan is the authorized levels of agents' commission percentages. "Many companies offer 17.5% more than the confirmed level to agents and this creates a situation of unprofessional competition," he said. Several companies pay 20-30% to agents and this testifies financial artifice in the market.