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Azerbaijan to create ratings register of insurance companies and agents

Business Materials 8 April 2014 14:54 (UTC +04:00)
Azerbaijan Insurers Association is working on the creation of rating registries of insurance companies and agents, according to the AIA chairman Orhan Bayramov.

Baku, Azerbaijan, April 8
By Abbas Akhundov - Trend:

Azerbaijan Insurers Association is working on the creation of rating registries of insurance companies and agents, according to the AIA chairman Orhan Bayramov.

"Today there is a situation that if a client is dissatisfied with the quality of services of any of the insurance company, he loses confidence in the insurance in general. That is to say substandard work of one company forms a negative image for the entire market. For example, this situation is not observed in the banking sector," he said.

Therefore, it is necessary to establish a register of insurance companies on the quality of their work, which will serve as an indicator for the population, according to Bayramov.

Objective criteria such as the number of customers of companies, the number of complaints received by any company, the number of lawsuits between companies and customers, the number of unjustified refusal of payment and others will be used in the formation of the registry at the initial stage. It is possible to include the surveys among the population in the future.

"Once we define a list of these criteria, it will be necessary to carry out actuarial studies to determine quality coefficients," Bayramov said.

If the registry of the companies is intended for the public, the register of insurance agents will be used by the companies.

The registry of the agents will help companies to learn which agents have a negative history of cooperation with insurance companies, according to the AIA chairman.

"For example, today insurance agent who was dismissed by any insurance company can be easily employed by another, as the second company knows practically nothing about him. The companies registry will be launched faster. It is more difficult with the agents, as we will get their first reports on the financial activity only after three months, " Bayramov said.

Access to the register of companies will be free, according to Bayramov. The Association members are not determined over access to the registry.

There are 26 insurance and one reinsurance company in Azerbaijan. At present, about 800 agents operate in the country.

Translated by S.I.
Edited by C.N.

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