Azerbaijan Insurers Association talks about developing potential of life-insurance

Finance Materials 23 December 2020 20:24 (UTC +04:00)
Azerbaijan Insurers Association talks about developing potential of life-insurance

BAKU, Azerbaijan, Dec. 23

By Zeyni Jafarov - Trend:

The main obstacle to the development of the insurance sector, as in any other sector, is the lack of public awareness, Elmar Mirsalayev, executive director of the Azerbaijan Insurers Association, told Trend.

“The lack of electronization and automation by types included in the voluntary life insurance is also one of the main reasons that hinder the development of this segment,” Mirsalayev said. “The process of automation for the compulsory type of life insurance has already begun and is developing rapidly.”

“I think that the positive trend in the market indicators of this class will be more noticeable if electronicization services are introduced by the types included in the segment of voluntary life-insurance,” the executive director said.

“If we pay attention to the indicators during 10 months of this year, it becomes obvious that 41 percent of the fees have been ensured through life insurance,” Mirsalayev said.

“Presently, this type of insurance services includes only one compulsory type and this is "compulsory insurance against accidents at work and loss of professional ability to work as a result of diseases",” executive director said. “The market share of this insurance product is estimated at 17 percent.”

The product that belongs to the specified class and having the biggest share in the insurance market is "survival insurance". In accordance with survey indicators for 10 months of 2020, this type has a share of 68 percent in insurance premiums.

"The market potential of life-insurance products is quite wide,” Mirsalayev said. “Today, people purchase life insurance to insure their lives in case of death and other unforeseen circumstances."

The Azerbaijan Insurers Association was registered on December 29, 2006. Today there are 21 insurance companies and one reinsurance companies in Azerbaijan.


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