Azerbaijani Insurers Join Discussions over Global Financial Crisis in Germany
Azerbaijan, Baku, 1 November / Trend corr. U.Ismayilova/ The global financial crisis did not seriously affect the insurance markets, but the risk still persists. Insurers from different countries made this conclusion at a meeting in Germany involving the representatives of the Azerbaijan Insurers Association (AIA), Executive Director Gafar Majidov said on 1 November.
"The impact of the global financial crisis on insurance was the key subject of discussion at the annual meeting of the German and Russian insurers," he said.
"The meeting for the first time was held in extended format, therefore, the Azerbaijani insurers participated as well," he said.
According to Majidov, representatives of the associations of insurers of Ukraine, Belarus and other countries, representatives of public organizations and the professors from different universities, were in attendance.
The impact of the global crisis on the insurance market of Azerbaijan was insignificant.
The Azerbaijani companies which build their business only on insurance of pawn property crediting experienced damage, since in August Azerbaijani banks almost stopped consumer lending, particularly for loaning to purchase cars," Deputy Director General of Standard Insurance Aydin Rahmanov said formerly.
Suspension of consumer crediting by banks prompted decline in car sales as 80% of sale-purchase operations are carried out through crediting. Under the Law on Insurance, the cars must necessarily be insured by OSAGO insurance policy which accounts for larger part of portfolio and it is a kind which contributes to a growth in insurance market.
Many insurance companies develop their business by promoting car insurance which makes up about 30% of entire insurance market, according to Namig Khalilov, chief of State Insurance Control Department of the Ministry of Finance. The insurance market will not show the anticipated growth by the end of the year which was forecast at 30%-35%.
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