Our interviewee is Orkhan Afandiyev, the CEO of Azerbaijan Industrial Insurance Company OJSC. He was born in Baku, in 1987. He was admitted to the Applied Mathematics faculty of Baku State University in 2005, and selected for Presidential Scholarship. In 2009, he continued his education in the "Probability Theory and Mathematical Statistics" department of the same faculty for a master's degree.
APA presents the interview with Orkhan Afandiyev who has continued his professional activity in the field of insurance for more than 15 years.
- Mr. Afandiyev, Azerbaijan Industrial Insurance Company which is chaired by you, has recently been with record insurance payments on the agenda, we would like to know your attitude regarding this issue.
- As you know, several major fire incidents have occurred in our country in recent years. The biggest of them was the fire in “Azersun” Industrial Park in Haji Zeynalabdin Taghiyev settlement of Azerbaijan’s Sumgayit city on April 27, 2022, which is insured by our company. As you mentioned, our company made a record payment for this incident.
- How did this large-scale insurance payment affect the company's financial situation?
- I would like to mention that it did not have a serious impact on our financial situation, as most of the risk has been reinsured. In order to minimize the impact of such incidents on the company, several points must be considered: the company's strategy, including procedures and rules, should be properly put together, they must be followed properly and most importantly, the right business partners must be chosen.
- Is the reason you completed the year 2022 with a loss the mentioned fire incident?
Of course, when there is a major event of this scale, as actuaries know better, there are sharp increases in the insurance company's reserves. This is naturally being reflected in the financial indicators of the company. I want to mention that we aim to finish this year with profit although the payment will be made in 2023.
- As for the financial indicators, the growth dynamics of Azerbaijan Industrial Insurance OJSC can be seen in recent years under your chairmanship, what is your attitude regarding this?
- It is true that if we take a look at the statistics, while 5,500,000 manats of insurance costs were collected in 2019, according to the results of 2022, this figure was 14,500,000. Of course, this result is not sudden, but it is due to the work done over the years and the results achieved. We aim to grow even if a little bit every year. And this is reflected in the results.
- What type of insurance has Azerbaijan Industrial Insurance Company focused on developing?
- We prefer multifaceted development. As you know, I have an actuarial background, I believe that with its effect I prefer to concentrate risks in different types rather than in one type. As you can see, although property insurance is one of the most harmless types, we can suddenly face a huge loss. As a result, in order to minimize the impact of the damage we face from one kind, it is a must to have insurance collections from other types. If we compare, over the years, we have achieved the highest growth in Compulsory third-party liability insurance of motor vehicles (Compulsory auto) by 546%, Voluntary Medical Insurance by 236%, cargo insurance by 123%, and casco insurance by 100%.
- Can you share the secrets of the growth dynamics of Azerbaijan Industrial Insurance Company in recent years?
- I don’t think there is a secret in this growth. So, when the right team is built and customer satisfaction is targeted, it shows itself in the results. As you know, service related to health is a sensitive topic for society. Following this path, we made serious changes in Voluntary Medical Insurance, renewed the call center, as well as we added new services. And this was reflected in the overall increase in customer satisfaction.
- Your company is about to turn 27, on this occasion, we congratulate you, and wish you steady success. What are your plans for the coming years?
- Thank you, yes, we will mark the 27th anniversary of our Company at the end of the year. The main goal for the future is to increase customer satisfaction further. It is no longer the era that services are carried out on paper nor there’s a requirement of approaching the company. We intend to automate all possible services. We have the potential and power for this as well.
- Mr. Orkhan, thank you for the interview.
- thank you very much.
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