Life insurance market in Azerbaijan needs to be reformed

The ongoing III Azerbaijan International Insurance Forum (AIIF-2012) has addressed the problem of local life insurance.

According to the speaker, chairman of the Insurance Company Ateshgah Hayat, Akbar Madatli, full development of local life-insurance is interfered with the lack of reliable instruments that can attract large investments, as well as gaps in the legislation and a low level of trust from consumers. Unfortunately, the local life insurance companies use exclusively bank deposits as an investment tool.

In continuation of yesterday's speeches, he spoke about the need for legislative tax incentives. It would be nice to release individuals entering into a contract of life insurance, not only on the income tax, but also on the part of social welfare payments.

In the country, insurance contracts are valid up to 3 years, and credit agreements are valid for a maximum of 25 years, said Madatli. There is a need to improve the compulsory insurance, the reform of pension insurance, providing mass information to citizens.

Recall that three companies - Pasha Hayat, Ateshgah Hayat and Qala Hayat - deal with life insurance in Azerbaijan. -17D-