Jamil Melikov: World financial crisis will affect Azerbaijan’s insurance market

Jamil Melikov: World financial crisis will affect Azerbaijan’s insurance market
# 17 December 2008 16:01 (UTC +04:00)
Baku. Elnur Huseynguluev - APA-Economics. Azerbaijan-based insurance company MBASK has today released the results of a journalistic contest on the topic of “Prospects for the Development of the Insurance Market in Azerbaijan”, and its financial performance in 2008.
Jamil Melikov, Chairman of MBASK, and head of the Supervisory Board of Azerbaijan Insurers Association, said that the company earned more than 15 million manats in insurance premiums and paid 4.5 million manats for insurance claims in January-September.
“The insurance premiums are predicted to reach 18 million manats at the year-end. While motor insurance topped the insurance portfolio in January-September, this will be replaced by property insurance at the yearend due to the financial crisis. The crisis has started to hit car insurance segment.
This is directly shown in the last quarter of this year. At the onset of the financial crisis, some insurers claimed that the crisis would not have a direct impact on the insurance market. However, if the crisis affects foreign reinsurance companies, it will sooner or later impact on the insurance market of Azerbaijan. For this reason, ratings of foreign reinsurance companies are now gradually downgraded. I would like to note that the crisis has not seriously affected the insurance market of Azerbaijan, as most local insurers are implementing their investment transactions in the domestic market. That is, all investments are kept in banks as deposits,” he added.
He spoke about the Association’s plans for next year.
According to him, the Association has prioritized three areas - the organization of training courses for representatives of insurance companies, training of actuaries and cooperation with international insurance companies.
Hamil Melikov also noted that the Association will organize an international insurance conference in Baku this year.
The winners of the contest were awarded at the end of the event.
At present MBASK has more than 160 employees and 300 insurance agents. The company is the second to only AzerSighorta State Insurance Company in terms of the number of employees.