Top managers and businessmen rapidly invest in area of insurance

06.12.2017,12:38


December 6, Fineko/abc.az. Financing invested in the insurance of Azerbaijan has reached a record level.

Speech is about investments in life insurance - an alternative kind of investments.

The amount of security deposits collected for Jan-Oct of the current year increased up to AZN 108.588 million that is by AZN 42.337 million or 63.9% more compared with the 2016 same term. The size of investments in life insurance for the first 10 months of 2016 reached AZN 66.25 million.

Insurance expert Mustafa Abbasbeyli stated to abc.az that the market share of life insurance companies is larger than the one of companies not relating to this type of insurance.

"The same trend continues: the market share of life insurance companies increases annually, and this is a positive factor," the expert claimed.

The expert believes that another main cause is population’s distrust to banks: "People have a subconsciously-formed negative attitude towards banks, and therefore, they consider life insurance as an alternative investment. And that could be fraught with large consequences for the banking sector," he said.

Abbasbeyli stressed that a significant part of bank deposits accounts for the corporate sector. Currently, the size of bank investments in the corporate sector has decreased much as well. The vast majority of employees working in the corporate sector choose investment in life insurance. In other words, workers of the financial sector, businessmen, top-managers make large investment in life insurance.

The expert pointed out that another cause of the increasing interest of people to the sector of life insurance is the possibility of a return of the money they could lose.

 

 

Ключевые слова: insurance