Baku, Azerbaijan, June 27
By Emin Aliyev - Trend:
Azerbaijani banks' interest in its own risk insurance is quite little, Bakı Sıgorta Deputy Chairman of Board Ramin Mammadov told Trend on June 26.
"Despite modern internal audit systems being developed well enough in banks, negative facts still happen," he said. "They are mainly related to the human factor. The banks well aware of this prefer to insure their risks."
"Some 90 percent of such risks in Azerbaijan are reinsured abroad," he said.
"The reason is that the local market will fail to fully take on such a commitment," Mammadov added. "There are enough companies abroad having the necessary experience and experts in this field. Our company, for example, is working with one of the UK's leading reinsurers. In 2013 we made big insurance payment worth 1.7 million manats to one of Azerbaijani banks in which fraud occurred."
Bakı Sıgorta collected 1.14 million manats in January-May this year, according to the Ministry of Finance. The company has made insurance payments in the amount of 0.99 million manat since early 2014.
Bank Respublika owns a controlling stake of Bakı Sıgorta (51 percent). The company has been operating since August 28, 2007. It has a perpetual license for rendering 25 voluntary types of insurance services.
The official exchange rate is 0.7843 AZN/USD on June 27.