Azerbaijani Insurers to Make Offers on Cut of Damage from Financial Crisis

Business Materials 15 October 2008 15:52 (UTC +04:00)

Azerbaijan, Baku, 15 October / corr. Trend U.Ismaylova / The Azerbaijani insurance market increased only by 15% in the third quarter (Q3), despite the forecast of 30% ," Jamil Malikov, head of Azerbaijani Insurers Association , CEO of MBASK insurance company, said.

"Such considerable reduction of market happened over influence of world finance crisis," Malikov said.

Growth of Azerbaijani insurance market made up over 60% in 2007 and 30% in January to June 2008. In January to September i ncrease of market was forecasted on the level of 60%.

Azerbaijani insurance companies are connected directly with activities of banks. Some national banks suspended temporarily issuance of loans , which led to depression at the insurance market, where consumer loans were insured.

"The association charged underwriting committee to develop offers to minimiz e damage to insurance companies in conditions of present s tate of financial market," Malikov said.

AI A uniting country's 30 insurance companies, was established in December 2006. The AI A Supervision Board includes MBASK, Standard Insurance, International Insurance Company, Azersigorta, and Ateshgah. Although Azer-Asia and Gorgud Sigorta stopped operation as Ministry of Finance cancelled their licensees, they are still members of the Association.

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