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Azerbaijan should create insurance culture, expert says

Finance Materials 15 November 2019 12:19 (UTC +04:00)
Azerbaijan should create insurance culture, expert says

BAKU, Azerbaijan, Nov. 15

By Eldar Janashvili – Trend:

The slight growth of real estate insurance is still observed in Azerbaijan, Azerbaijani insurance expert Ilkin Najafov said, Trend reports.

“This mainly occurs due to the distrust of the population in the insurance market, people are not sure that insurance payments will meet their needs and justify expectations,” the expert said.

“The second reason is the low income of the population,” the expert added. “An insurance fee worth 30 manat ($17.7), even in case of compensation worth 15,000 manat ($8,835), is not always an affordable amount in the country’s districts.”

“A certain insurance culture of the population should be created by ensuring guaranteed payments within the mandatory insurance, and as a result, the volumes of mandatory insurance will increase as well,” Najafov said. “Then, the interest of the population in other types of insurance will also increase.”

“The popular type of insurance among the population - mandatory vehicle insurance, which envisages that after its application, policyholders receive real insurance payments, can be cited as an example," the expert said.

“The real estate insurance is usually not mandatory abroad,” Najafov said.

“The media outlets must also pay due attention to this sphere, allocate advertising spots, promote real estate insurance in the context of social advertising,” the expert said.

“If this type of insurance were effectively applied, insurance premiums in the country would increase by 120 million manat ($70.7 million), which would lead to the creation of a certain insurance fund, which would be an impetus for the development of insurance companies,” Najafov stressed, referring to the data of the statistics committee.

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