Market participant: Certain measures to be required to achieve pre-crisis development of Azerbaijani insurance market

Business Materials 1 May 2010 15:38 (UTC +04:00)

Azerbaijan, Baku, May 1 / Trend U. Ismayilova /

Dynamics of a small increase of the Azerbaijani insurance market will continue throughout 2010 and 2011, Alfa Sigorta company the board of directors head Khayal Mammadkhanli said.

"The insurance market of Azerbaijan can return to growth before the crisis period (in 2008 growth was 22 percent, in 2007 - more than 60 percent), only if appropriate actions are taken", he said.

He said that currently there is still an increase in problem loans in the banking sector. The insurance market development depends on it. The insurance market development is impossible.

He said that Azerbaijani insurers should eliminate the dependence on the banking sector, introduce new insurance products.

Azerbaijani insurers today do not have much choice, because insurers often offer property insurance, automobile and medical insurance, which is not enough to ensure the development of the market, he said.

"Another important step towards the development of the market is to increase the confidence of potential customers by ensuring timely payments, as some insurers under any pretext are trying to evade payment," he said.

There are 28 insurance and one reinsurance company in Azerbaijan. Insurance companies in 2009 collected premiums worth 163, 31 manat and insurance payments 53,07 manat. Premiums for the year reduced by 8.9 percent, the payments have increased by 6,5 percent.

The total premiums of all companies operating in the country in the first quarter amounted to 44.43 million manat, and payments for the period carried to 10.29 million manat. Total premiums for the year increased by 3.64 percent (in the first quarter of 2009 - 42.87 million manat), payments reduced by 0.29 percent (10.32 million manat).

Alfa Sigorta was registered in August 1997 under the name of Murad insurance company, and received the certificate on state registration. Since December 2006, 100 percent of the company's shares have been purchased by Texnika Bank. The company provides services on 25 types of insurance services. Authorized capital is 3.1 million manat.

The company's premiums on the basis of activity in the first quarter totaled 0.28 million manat, with payments worth 0.04 million manat.

On May 1, the official exchange rate is 0.8033 manat to $1.