Azerbaijan intends to speed up using system for assessing insurance damage

Business Materials 28 June 2018 15:38 (UTC +04:00)

Baku, Azerbaijan, June 28

By Anvar Mammadov - Trend:

Full introduction of insurance damage calculation system in Azerbaijan's insurance companies is one of the primary tasks facing the insurance market of the country today, Director of Audatex Azerbaijan Company Zakir Kerimzade said June 27.

The director of the company noted that, despite the fact that this system has been operating in Azerbaijan for about two years, not all insurance companies use it.

"During the period coming after the introduction of Audatex, we have fully translated our program into Azerbaijani. All models existing in the market are entered into the system in Azerbaijani language. In total, the program covers 80 percent of the country's market. It took us about 1.5 years of time, given the fact that we did not have a technical dictionary for cars. We had to create a technical dictionary first and then translate it into Azerbaijani," Kerimzade said.

Referring to the low level of use of the system, Kerimzade stressed that it is associated with the lack of certain standards of settlement of insurance cases in the country, and each insurance company considers the insurance coverage in its own way.

"And, given the fact that most insurance companies make payments in cash, the Audatex system is not in demand. Therefore, we need common standards and rules for calculating insurance damage. This is currently a priority for the Financial Markets Supervision Chamber and the Compulsory Insurance Bureau. At the time, we offered a single system of calculation of damage in an accident. This is an important step to unify the loss calculation methodology. To date, each insurance company considers the damage in its own way, as a result of which there may be conflicts between customers and the insurance company, as well as between insurance companies," Kerimzade said.

From October 1, 2015, insurance companies of Azerbaijan, which are members of the Compulsory Insurance Bureau (CIB), can use the "Audatex Azerbaijan" software.

The use of Audatex software allows for applying unified approaches and system of damage assessment to the vehicle as a result of road accident in the insurance market of Azerbaijan, which provides the assessment of damage by insurers based on a single system.

Audatex Azerbaijan was created on the basis of an agreement of the CIB with Sidexa Company, representing the interests of the Audatex Company in France. The document was signed at the end of 2014, however, the company itself was registered in Azerbaijan in March 2015. Audatex is part of the Solera Holdings Inc.

Audatex Azerbaijan was created to apply a unified approach and system of damage assessment in the field of compulsory insurance of civil liability of car owners (MTPL) in Azerbaijan.

In 2016, the Compulsory Insurance Bureau (CIB) of Azerbaijan signed an agreement with Audatex Azerbaijan Company on the acquisition of five percent of the company's capital.


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