Azerbaijan, Baku, April 28 / Trend U. Ismayilova /
All Azerbaijani insurance companies have the opportunity to insure major tourist facilities, Xalq Sigorta Deputy Chairman Akbar Tahiri said today.
"Insurers can take big risks despite the level of capitalization," he said.
Tahiri added that under the law on insurance activity, which will enter force in March 2008, insurers can keep only 10 percent of their risks. The remaining 90 percent must be transferred to reinsurance.
Such conditions create the opportunity for insurers to participate in major insurance and other tourist facilities. The insurance service package includes two types of insurance - property insurance and officer liability to third persons.
Azerbaijani President Ilham Aliyev signed a decree April 6 to approve the state program of tourism development for 2010-2014. It will resolve existing problems in the field of tourism and provide even greater development of tourism in the country, the state program said.
The program aims to establish a modern tourism infrastructure meeting environmental, social and economic demands, and then transforming the sector into a strong economic pillar.\
There are 28 insurance and one reinsurance company in Azerbaijan. Insurance companies in the first quarter of 2010 collected premiums of 44.43 million manat.
Total premiums for the year increased by 3.64 percent (42.87 million manat), while payments reduced by 0.29 percent (10.32 million manat).
On April 28, the official exchange rate is 0.8033 manat to $1.