BAKU, Azerbaijan, May 7
By Yusif Aghayev - Trend:
We’ll continue to maintain the positive growth dynamics sales, but only of high-quality sales, Chairman of Board of Standard Insurance company Kamran Babayev said in an interview to Trend.
According to him, in 1Q2020, the company ranked 11th among domestic insurers for collection of insurance premiums worth 3.4 million manat ($2 million), thereby showing high growth dynamics compared to the same period of last year, namely by 1.8 times.
“We are satisfied with the results of the quarter, but they did not come as a surprise to us. In principle, we achieved the targeted results, and our forecasts came true,” he said. “At the beginning of this year, we set the goals to clean the insurance portfolio from a loss-making business, increase quality sales, and improve customer service.
“The first quarter was rather difficult for us; the company is going through a transition period, which is always painful," Babayev said.
After the bankruptcy of the parent bank - Standard Bank - in October 2016, the company faced with problems. The sales fell by more than one third, many employees, including senior and middle managers, left the company and problems with the payment of insurance claims occurred.
According to the chairman, in the first quarter of this year, there were embarked landmark trends in the positive dynamics of development. Among the main priorities of the company were rehabilitation and diversification of the insurance portfolio.
“If last year, compulsory types of insurance prevailed in the portfolio, then in the first quarter of 2020 the company already attracted several corporate customers for voluntary insurance types and won one large tender,” he noted. “Recently, a new organizational structure has been approved; changes in the job responsibilities of employees made; some structural units were divided and became independent of each other.”
“We pay great attention to customer feedback. In this regard, we periodically conduct surveys among our clients to reveal the level of satisfaction with the service, and also analyze complaints and suggestions coming from them.” Babayev said. “All this gives us the opportunity to determine our weaknesses, what exactly needs to be improved and in which direction we should move. According to the results of the analysis, we saw that we have problems with addressing customer requests.”
“A new division was created, which is multifunctional information center. After the beginning of its activity, we received no complaint about appeals to us," the chairman noted.
Speaking about the development strategy, Babayev also pointed out that the company is interested in developing in the districts.
“As of now, a financial analysis of the activities of all district offices is underway. Problems are identified and resolved, new points of sale are opened,” he said.
The chairman also touched upon the issue related to the most relevant and priority types of insurance for development in 2020. “As you know, the market for compulsory property insurance has not yet been fully developed. After the electronic control mechanism is introduced within this type of insurance, its development will speed up,” he said. “Regarding voluntary types of insurance, as I believe, the main growth should be expected from health insurance and voluntary car insurance. Although in 2018-2019, the company lost several health insurance clients, this year we began to attract new customers including large companies.”
“We also actively participate in biddings and have already won one major tender,” Babayev noted.
“The health insurance portfolio has begun to grow. During the first quarter of this year, we launched two new insurance products - "Leylak" and "Qonshum" - as part of health insurance and general liability insurance,” he said. “Despite lack of respective marketing support, citizens have already displayed their interest for the products, calling to us. I expect serious sales, as both products are useful and beneficial to the people.”
“We are also working on the creation of other products. The insurance market needs completely new products. However, before launching a new product, it is necessary to scrutinize the need for it, and also analize the interest and motivation of sellers and agents in the implementation of this product," he noted.
Speaking about how the impact of coronavirus pandemic on the company's operations and the insurance market as a whole, Babayev pointed out that Standard Insurance had promptly approved an internal plan of activity during the lockdown, and is still working in accordance with the plan.
Some of the employees work in the office, some remotely, from home, he said.
"We have no problems with providing services to customers. Sales fell slightly, but this was expected, and we were ready for this. I believe that Azerbaijani insurance companies will overcome these temporary difficulties without serious losses," concluded the chairman.
Standard Insurance OJSC was established in 2002 as a full-fledged insurance company operating in the non-life insurance segment.
To this date, the company has a license to carry out 4 compulsory and 24 voluntary types of insurance.
In 2019, the company collected insurance premiums in the amount of 14 million manat ($8.2 million) and paid insurance indemnities in the amount of 5.4 million manat ($3.1 million), ranking 14th among the domestic insurers.
Today, 22 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on May 7)