Azerbaijani insurers nearly doubled expenditures for intermediaries
Azerbaijan, Baku, July 5 / Trend A.Akhundov /
Azerbaijani insurance companies direct the main part of their expenditures on the provision of payments and business conduct. Thus, in the last two years, 32.62 percent of expenditures of insurers fell on payments and 30.14 percent on conducting business.
This is stated in the article of the consultant of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan Gunduz Aliyev in the journal, published by the Association of Insurers of Azerbaijan and dedicated to the Azerbaijan International Insurance Forum held in Baku in June.
During the reporting period, 29 percent of companies' expenditures were related to the risk transfer in reinsurance, five percent fell on other expenses.
The expenditures of insurance companies in 2012 increased by 34.68 percent to 305.51 million manats, as well as the insurance payments increased by 49.48 percent to 104.04 million manats, the expenditures for doing business rose by 53.5 percent to 97 15 million manats, which is an indicator of improving of the quality of provided services.
In 2012 some 25.7 percent of the expenditures of business conducting (24.97 million manats) were directed to the payment of salaries to employees, 27.92 percent (27.12 million manats) to commission payments to insurance intermediaries, 8.02 percent (7.79 million manats) for advertising. So, for the past year wage costs increased by 6.11 million manats, or 32.34 percent, commission payments rose by 13.08 million manats or 93.16 percent, advertising costs increased by 60.62 percent.
The growth of advertising and PR costs played an important role in the increase of interest in the insurance and informing insurers.
In 2012, the Azerbaijani insurance companies had 2,343 employers in comparison with 1946 persons in 2011; the average salary grew from 808 manats to 888 manats.
At the end of 2012 the total volume of premiums of all companies operating in the country amounted 342.52 million manats (an annual increase of 60.8 percent), and the payments made during the reporting period amounted 93.86 million manats (an increase of 52.45 percent).
The official exchange rate on July 5 is 0.7844 AZN/USD.