Market participant: Int'l experts consider investment in Azerbaijani insurance market
Azerbaijan, Baku, June 7 / Trend A.Akhundov /
Almost all insurance experts praised the investment attractiveness of the Azerbaijani insurance sector at an international insurance conference held in Istanbul on May 25-27, Azerbaijani insurance company Pasha Sıgorta Chairman Nofel Rzayev said.
"Recognizing Azerbaijan's highest economic potential and good prospects for its insurance market, almost all insurance experts at the conference and during direct talks have positively evaluated the country's investment attractiveness," Rzayev said.
He said that low capitalization of the insurance companies is the insurance market's weakest point.
"As for the weaknesses of the Azerbaijani market, firstly, this is clearly conspicuous low capitalization of the insurance companies, which does not allow them to expand logistics and market development through modern insurance and reinsurance products," Rzayev said.
Rzayev said another problem is that these companies, being limited in their ability to invest in the resource base and human resources development, discredit the image of the insurance industry and professional insurers as a strong, reliable and professional partner.
"In terms of international practice, each Azerbaijani insurance company, in one way or another, comes to foreign insurance markets for the purchase of reinsurance capacity. The slightest technical error in this process creates the wrong image about Azerbaijani insurers in general. International experience suggests active mergers and consolidation of insurance companies in such cases," he said.
In any case, the final professionalism of the Azerbaijani insurance market is required of the time, and delaying the process makes it more difficult, Rzayev said.
The State Insurance Supervision Service under the Azerbaijani Finance Ministry reported that the total volume of premiums amounted to 155.59 million manat in 2010. The total volume of premiums of all companies operating in the country amounted to 66.342 million manat (23.47-percent increase), and payments amounted to 17.673 million manat (21.71 -percent increase) in January-April 2011.
Twenty seven insurance companies and one reinsurance company operated in Azerbaijan during the report period.