Azerbaijani company refuses to join Compulsory Insurance Bureau

Economy Materials 11 September 2014 15:58 (UTC +04:00)

Baku, Azerbaijan, Sept. 11

By Zulfiyya Gurbanova - Trend:

The Azerbaijani-Turkish insurance company "Basak İnam Sigorta" abandoned the plans of joining the Compulsory Insurance Bureau, chairman of the company's board Orhan Hasanov told Trend Sept. 10.

"The company has tried to join the bureau for several years," he said.

"However, this is not in our plans," he said. "There are enough players on the market. "It will be unreal to join the bureau as a new player."

Around 15 companies are the participants of the Compulsory Insurance Bureau. The bureau was established in accordance with the law "On compulsory types of insurance". The insurance companies have started using it since December 16, 2011.

Hasanov said that in 2014 "Basak İnam Sigorta" company plans to leave the amount of premiums at the same level as last year - about four million manat.

According to the State Insurance Supervision Service under the Azerbaijani Ministry of Finance, the company's premiums totaled 4.14 million manat and payments -1.78 million manat in 2013. The company ranks 21st [there are 28 insurance companies in Azerbaijan] in a volume of premiums, while 17th in payments.

"The company has collected premiums worth 2.5 million manat since early 2014," he said.

Basak-İnam Sıgorta Sirketi has been operating in the country's insurance market since 1996. It renders 31 types of insurance services. Some 19.95 percent of shares are owned by Zamin bank. Some 48 percent fall to the physical entities, Groupama Sigorta A.S. (Turkish subsidiary of the European largest insurance company Groupama) - 17 percent , Turanbank - 8.5 percent , AzerTurkBank - 6 percent , Aqrarkredit non-bank credit organization - less than 1 percent.

The official exchange rate is 0.7843 AZN/USD on Sept. 11.