AzSigorta: We were ready for decline in the financial performances, future of company is more priority - INTERVIEW

AzSigorta: We were ready for decline in the financial performances, future of company is more priority - <span style="color: red;">INTERVIEW
# 19 December 2017 08:51 (UTC +04:00)

Chairman of the Board of Directors of AzSigorta Anar Talibov’s interview to APA-Economics:

- Fitch Ratings has recently revised AzSigorta’s rating. How would you assess it?

- Fitch Rating did not make any change on AzSigorta’s rating. It’s just a change of outlook and this is temporary. Works on new business are already underway and we believe that positive outlook will be restored.

- Are you satisfied with the rating ‘B’?

- First, it’s necessary to take into account that there are factors affecting the rating which don’t depend on the company. We must work on factors which depend on us so that our rating can be restored. AzSigorta is one of the two companies with international rating in Azerbaijan.

- in its statement, Fitch Ratings hinted at weak business portfolio of the company and difficult operating condition in Azerbaijan. Which steps are you planning to take to cope with these challenges?

- Yes, as Fitch Rating hinted, the difficult condition affects AzSigorta’s business portfolio, however, if we look at the insurance market we’ll see that a number of companies face these difficulties. As for our steps, a new structure of the company has already been approved, new sales policy has been adopted. At the same time, we are also working on digitalization.

- As Fitch Ratings stated, the financial performances of the company weakened in the third quarter of 2017? What is this related to?

- Within the new strategy we made very courage decisions this year. One of these decisions was that unlike the market our sales policy changed. We knew that the performances will weaken. This was a considered step. Future of the company is more priority for us. We shifted from quantity to quality. To my mind, the companies thinking of the future of the market will choose this way sooner or later.

- In the recent times, media releases reports about your employees’ resignation. Why do they resign?

- If we look at those who resign we’ll see that they are employees who engaged in sales activity. The reason is that they did see themselves in our new sales policy. This is normal and we were expecting this.

- In what form is the distribution of compulsory and voluntary types of portfolio and how will it change in the near future?

- In general, Azerbaijan’s insurance market is very young. If we look at the developed market, we’ll see that the voluntary insurance has developed more. This is because their population have high insurance culture. Compulsory insurance types are one of mechanisms providing development of the market. Compulsory insurance types usually prevail in a newly-formed market. Compulsory insurance types prevail in our company too. However, we intend to increase the share of voluntary insurance types. We are planning to introduce new voluntary insurance products and contribute to development of insurance culture among the people.

- Do you need increase of authorized capital in the near future?

- Our authorized capital meets requirements and therefore, we don’t need increase in the authorized capital.

- At the last interview with chairman of Board of Directors vidadi Maniyev, it was known that AzSigorta will continue optimizing works. How will it be done?

- Within the new strategy, one of our main goals is to improve the company to a new technological level. The main point in here is to affect the service level positively and increase customer satisfaction. We have planned concrete steps for this. I hope we’ll hear results of these steps from our customers.