Market participant: Azerbaijan needs 10-12 serious insurance companies

Business Materials 20 July 2011 14:37 (UTC +04:00)

Azerbaijan, Baku, July 20 /Trend, A.Akhundov/

Azerbaijani insurance market needs 10-12 serious insurance companies, the chairman of the Board of Azerbaijani Paşa Sığorta Insurance Company Nofel Rzayev said.

"Azerbaijan needs 10-12 insurance companies, but serious. The more there are unserious companies, the more they will discredit the serious companies, because they do not have money, they can not pay a decent wage, develop their staff, create material and technical base, normally provide services to customers," said Rzayev.

Today in Azerbaijan there are 28 insurance companies (including five with foreign capital), one reinsurance company and six brokerage companies (including five with foreign capital).
"If to look at the ranking, ten companies during the year collect less than one million manat insurance premiums, the following ten companies - from one to three million manat," said Rzayev.

In 2010, 51 percent of the premiums collected by all companies accounted for the TOP-5 insurance companies, 78 percent - TOP-10, 92 percent - TOP-15.

The Deputy Minister of Finance Azer Bayramov said earlier that 15-20 insurance companies would be enough for the insurance market of Azerbaijan .

"The companies themselves have come to realize that they must merge with other companies. We do not want artificial implementation of these processes," said Bayramov.

The head of State Insurance Supervision Namig Khalilov told Trend earlier, commenting on the number of insurers needed for the Azerbaijani economy that it will depend on how well the insurance companies will built their activities.

Accordingly, all depends on the efficiency of activities of the insurers, said Khalilov.