Azerbaijani insurers should develop new types of insurance: market participant
Azerbaijan, Baku, Jul.24 / Trend U.Ismayilova, I.Khalilova /
Azerbaijani insurers who felt the global financial crisis more than others due to the substantial dependence on bank operations will experience difficulties for two or three more years, Azerbaijan Sigorta managing board chairman Khayal Mammadkhanli said.
The companies have long-term problems, because the banks which generally insured bank operations have signed an agreement for five years, Mammadkhanli said
If five-year agreements on insurance of bank operations signed in 2008, the odds are that the insurance cases may occur in the subsequent three years on the backdrop of absence of additional income, Mammadkhanli said.
Only 5-6 insurance companies were developing their activity via banking insurance, Mammadkhanli added.
According to Mammedkhanli, if the bank lending restored, the situation in these banks may be improved.
Development of other types of insurance is another way out from the situation, Mammadkhanli added.
Most local banks held up or restricted issuing consumer loans, as well as loans to buy cars since the second half of 2008. Many insurers in the market developed their business and increased portfolio via KASKO. Exactly these companies faced problem of substantial cut of portfolio and income.
As many as 28 insurance and one reinsurance company operate in Azerbaijan. The companies gathered 79.89 million manat in premiums, with payment of 24.65 million manat.
Az Sigorta insurance operates in the market since November 2006. At present the company has eight branches, as well as 40 regional offices in the country's regions. Az Sigorta offers 28 types of insurance services, three of which are obligatory.
In January to June, Az Sigorta collected premiums worth 5.56 million manat, with 1.95 million of payments.