Azerbaijan, Baku, June 19 / Trend , U. Ismayilova/
Underwriters Committee of Azerbaijan Insurers Association is developing recommendations to reduce impact of global financial crisis on country's insurance market, chairman of the association and director of MBASK insurance company Jamil Malikov said.
"The recommendations will be submitted to all insurers to form portfolio and expenditures in a right manner in crisis situation," Melikov said.
He said all these measures will help insurers to overcome difficult situation with minimum consequences.
The committee will mainly engage in analysis into adequacy of cost of insurance services, Malikov said earlier.
A company can offer the very service for 100 manats, a different company for 50 manats and a third company for 20 manats.
"The Association is trying to prove to insurers that the service for 100 manats is too expensive and they should reduce the price and minimize their profitability under any service, so that customers will not postpone insurance for a long period of time," Malikov said.
The Association also believes that we should not descend to the level of 20 manats. The truth is impossible to dictate to companies, because each insurer has its own pricing tools and methodology for calculating tariffs.
"Insurers must understand it. The main thing is to develop a methodology for pricing of our products and thereby protect some insurance companies from large dumping, because eventually it could lead to more problems," Malikov said.
He said today they will be able to solve any problems associated with lack of cash, but it can provoke great problems in the future when you will need to make huge payouts. Therefore, it would be impossible to withstand such situations without the stocks of major financial reserves.
Azerbaijan Insurance Association was founded in 2006. Its Supervisory Board includes MBASK, Standard Insurance, International Insurance Company, Azersigorta and Ateshgah.
On June 19, the official exchange rate is 0. 804 manat to $1.
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