Expert: Insurance sector needs reform


October 18, Fineko/ The insurance market in Azerbaijan has lagged significantly behind the banking sector as a whole, ABC.AZ was informed by expert Ekrem Hasanov.

According to the expert, the insurance sector is not developing: "Ordinary citizens and entrepreneurs apply to banks as necessary: someone needs to invest, someone needs to transfer money or take a loan. But the insurance sector is somewhat different, very few people are inclined to voluntary insurance, since there is no trust in insurance companies. Financial reporting also plays a role here. People don't think about getting insurance. To be honest, they do not consider insurers sincere, honest, just like bankers. Although, there are good, honest and competent specialists among our bankers and insurers. But the general position is as follows."

According to the expert, the whole point is that citizens are simply forced to use the services of banks, but not the services of insurers, with the exception of compulsory insurance.

"Azerbaijan needs to reform the insurance sector as a whole. Almost two years ago, this sector was transferred to the Central Bank, and the country's main bank has repeatedly stated that it is developing something in this area. But so far we don't see anything new. Nothing has changed in the legislation related to the insurance sector over the past two years. There are no changes either in the laws or in the insurance supervision system as a whole," the expert thinks.