Baku, Azerbaijan, Oct. 4
By Kamala Mammadli - Trend:
Endowment insurance has dropped down in Azerbaijan, Khayal Mammadkhanli, an expert in insurance, chairman of the committee of insurance intermediaries of the Association of Insurers of Azerbaijan, told Trend.
The chairman of the committee said this was due to the fact that last year rules were abolished, according to which citizens applying for a life insurance policy (endowment insurance) were exempted from paying taxes and payments to the state social security fund. Now, citizens, when applying for a life insurance policy, are obliged to make payments to the state social security fund," Mammadkhanli said.
The chairman of the committee noted that there is a significant difference in insurance fees in this area.
"The fees for this type of insurance amounted to about 200 million manats, which took almost 20-30 percent of the entire insurance market. If last year, citizens could give 1,000 manat to endowment insurance, now they can give only 500 manats due to taxes," he added.
The chairman noted that the reduction is observed only in endowment insurance fees.
From January to August 2019, the volume of the life insurance market in Azerbaijan amounted to 183.716 million manas, which is 30.5 percent less than in the same period last year.
Four companies in Azerbaijan have a license to provide life insurance services - PASHA Life, Ateshgah Life, Qala Life and Xalq Life. Their share in the total fees of insurance companies in the country for the reporting period amounted to 39.1 percent.
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