Azerbaijan, Baku, 4 November / corr Trend U.Ismaylova / "Only those insurance companies, the business of which is connected directly with the bank sector, will feel affect of suspension of consumer crediting by the Azerbaijani banks," Shukur Huseynov, deputy chairman of Board of Azergarant insurance company, said.
"Most of all, it will affect the business of large insurance companies, engaging mainly in insurance of pawn property, which is pledged upon bank loaning," Huseynov said.
Insurance companies, which work with banks closely, render mainly three types of insurance services - insurance of pawn automobile, pawn property and individual insurance of life of borrowers.
"Specific weight of these three types of insurance total about 80% of volume of premiums of companies that testifies considerable reduction of their incomes," Huseynov said.
There are about 40 types of insurance in the Azerbaijani insurance market. The market continues to function at the expense of these types.
"I believe that reduction of volumes of market is a normal economic phenomenon, it is temporary, gradually everybody will work as previous," Huseynov said.
In August, under the influence of global financial crisis, many national banks suspended providing consumer credits, including crediting of purchase of car and real estate. Presently, providing consumer credits was renewed partially, but banks follow more careful policy and mass crediting is not observed.
Azergarant insurance company has been operating at insurance market since 1993. Company renders 22 voluntary and four obligatory types of insurance. The authorized capital of the company totals AZN 1mln.
Some 28 insurance and re-insurance companies operate in Azerbaijan. According to the Azerbaijani Ministry of Finance, premiums of companies totaled AZN 148.7mln with payments of AZN 40.4mln in January to September.
Official rate on 4 November is 0.8097AZN/USD.
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