Azerbaijan determines primary directions of microinsurance

Finance Materials 6 March 2019 18:41 (UTC +04:00)

Baku, Azerbaijan, Mar. 6

By Azad Hasanli – Trend:

Primary models of microinsurance products have been formed in Azerbaijan, a government source told Trend.

According to the source, the Financial Market Supervisory Authority of Azerbaijan (FIMSA) has studied the demand for microinsurance products and, based on survey results, has formed several product models.

These products include microinsurance in the event of the borrower's death, microinsurance in cases of incapacity for work, microinsurance to cover the costs of burial.

In general, the government noted that one of the main tasks set for the insurance sector is to expand the list of insurance products, as well as to strengthen the regulatory and supervisory framework.

“A number of events were held last year to this end. In particular, new proposals were prepared for the Law on Compulsory Insurance. Also, in order to expand the coverage of insurance against accidents and occupational diseases at work, electronic information systems of the Compulsory Insurance Bureau and the Ministry of Labor and Social Protection of Population were integrated. Another step taken to this end was the preparation of a draft law titled On Agrarian Insurance, which has already been agreed with the relevant structures," the government said.

Also, the source continued, in order to increase the efficiency, effectiveness and flexibility of risk assessment tools and prevent fraud, work began on the creation of a central electronic information system of the insured.

Meetings were also held during the past year to improve the institutions of insurance brokers and experts. As a result of these meetings, amendments were prepared for the Law on Insurance Activities and the Civil Cod. New rules were also prepared for independent experts, and rules for regulating the institution of insurance intermediaries were improved.

There are 21 insurance companies, 1 reinsurance company, 24 insurance brokers and 806 insurance intermediaries operating in Azerbaijan.