ASA chair: Amount of security of AZN 5,000 to increase in insurance sector


March 12, Fineko/abc.az. The Central Bank has made a proposal to increase the amount of collateral in the insurance sector, says Azer Aliyev, the chairman of the Azerbaijan Insurers Association (ASA).

According to Aliyev, this matter of security no longer meets the economic situation.

Noting that the maximum payment on this type is 5,000 manats, the ASA chairman noted that people are discontent that they do not see the full payment.

Aliyev also noted that the bonus-malus system will also be changed: "The amount of security is not sufficient. Therefore, one of the proposals relates to an increase in the amount. At the same time, you need to work on various commissions and bonus-malus system. The method of calculation in the system, the coefficients must be different. These proposals have already been given by actuaries. When this law came into force in 2010-2011, we had no statistics. We just used coefficients, referring to experience in the world. But today we have 10-year statistics. Insurance itself is based on statistics. And actuaries are an area in the insurance sector on which a lot depends on. Our strong insurance market will depend on how much correct reporting they will keep. They already have quite sufficient statistics which they share with the supervisory authority, with us. And such proposals were put forward on the basis of this statistics."

By Elmir Murad