Azerbaijan invites foreign investors into life insurance

Legislation regulating life insurance in Azerbaijan must be changed to attract foreign investors in this segment of the insurance market, the Atesgah S?gorta company (one of three life insurance companies in the country) board chairman Akbar Madatli said at the Azerbaijan International Insurance Forum AIIF - 2012 today.

"Appearing with leading foreign companies with innovative technologies in the country contributes to further development of life insurance in Azerbaijan," Madatli said.

He said that the life insurance growth in Azerbaijan may also stimulate the measurers of development of pension insurance. Moreover, removing several points in the legislation may also develop this sphere.

"For example, life insurance contracts of a borrower of mortgage loans are agreed for up to three years, while the contracts are set for 15-25 years," he said. "It would be advisable to increase this period. According to the legislation, a certain part of the salary of the insured which is transferred to life insurance is exempt from income tax. But these benefits do not apply to deductions for state compulsory social insurance. Exempting from these payments will increase people's interest in life insurance."

He said that the life insurance growth hampers several obstacles such as lack of public confidence in the insurance industry in general, lack of investment instruments and the above mentioned points in legislation and other factors.

Pasa Heyat, Atesgah Heyat and Qala Heyat are involved in life insurance in Azerbaijan.


/Trend/