Kamal Ibrahimov: "Conduction of international insurance forum in Baku proves interest of investors in our insurance market"

Chairman of the Association's Observation Council Kamal Ibrahimov spoke of the objectives of the forum in his interview to Day.Az.

- What is the purpose of holding the international insurance forum in Azerbaijan? How many participants and from which countries will attend the forum?

- Such forum is held in Azerbaijan for the first time and we hope it will be one of the most important international events of the insurance markets of the Eurasian countries. Insurance is a young sphere in Azerbaijan's economy and the current level of our contacts with foreign partners, re-insurers and other professional participants of the market does not completely satisfy us. In this sense the forum will allow Azerbaijani insurance and re-insurance companies, brokers and other professional participants of the market to closely familiarize with the experience of foreign countries and share their experience.

The forum is aimed at provision of information about the insurance market of Azerbaijan, development of integration processes in the international market of insurance services, consolidation of participants of the world insurance community, exchange of experience, development of partner relations.

It will be attended by over 100 representatives of over 15 countries of the world, including Turkey, Bulgaria, Austria, Great Britain, France, Germany, POland and a number of CIS states.

- Which famous insurance companies are to be represented in the insurance forum?

- The forum will be attendde by such big and famous re-insurance companies as Munich re, Cologne re, Hannover re, which asked to allow them to make reports duringthe forum. This is another proof of their interest to the insurance market of our country and existence of proposals as they already accept risks in re-insurance from Azerbaijan and are interested in expansion of business relations with our companies. The correct conduction of underrating, assessment of risks and insurance rates and others is the main issue for them in cooperation for us.

- Which issues will be discussed during the forum?

- The forum will focus on such issues, as tendency of development of insurance market in Azerbaijan, experience of the insurance markets of European countries in the light of its reflection in the insurance development in Azerbaijan, tendency of development of life insurance, insurance market of Azerbaijan as a financial system and corporate management in insurance.

- Which results are expected by results of the forum? What will the insurance forum give to the insurance development in Azerbaijan?

- First of all, we hope to make the international insurance forum a traditional event and hold it every year, which will, undoubtedly, play a great role in the development of the insurance market of the country. Some CIS countries as Russia, Ukraine and Kazakhstan, traditionally hold such forums. Conduction of such a forum in Azerbaijan every year will prove the real interest to the said market among foreign insurance and re-insurance companies, as well as tendencies of the correct development of insurance sector in our country.

As it was previously noted the first forum has already attracted over 100 participants, interested in and studying the situation on the insurance market of Azerbaijan and this is a positive sign for formation of the tradition of holding the annual insurance forum.

Moreover, about 20 Azerbaijani insurance companies to attend to forum will have an opportunity to establish dialogue with their fotreign partners, study structure of their insurance market and positive experience and apply them in Azerbaijan not leaving the country.

- What was the contribution of the Azerbaijan Insurers Association  to the development of country's insurance through the whole period of its activity?

- AIA is closely cooperation with the Finance Ministry and other state bodies and ensures rights of insurance companies in a form of a single structure and makes definite proposals to these bodies, complying with the interests of all insurance companies. Thus, AIA has made its proposals and taken part in the development of the draft law "On insurance".

One of the main principles of the association is to ensure management transparency, for which the Directors Board has been formed from among five companies, leading on the insurance market, and AIA chairman is re-elected on the basis of annual rotation. Thus, all insurance companies have an opportunity to take part in the AIA management.

After completion of the first Azerbaijan international insurance fond, there is a plan to hold the general assembly of AIA and elected a new Direcotd' Board to act within a year.

- Does AIA have a program of activity for the coming years, for example for 2008-2009? Which measures are included into this program?

- Along with conduction of an insurance forum, AIA has set a task to create the Insurers' school in Azerbaijan, to start functioning in the near future. Officials of insurance companies, their management, insurance agents and other professional market participantrs will study and raise their skills there. The Actuary schools will further be created on the basis of the Insurers' School and possible conduction of separate courses for accountants is not ruled out. This will be an independent, serious structure to contribute to development of the Azerbaijani insurance market. Participants of professional markets from nearest neighbor countries may also attend trainings in the said school.

AIA also attaches special importance to raising level of insurance education among the country population. Certainly, serious development is now recorded as compared to the situation on the said market 5 years ago. But difference is observed in comparison with the insurance level in western countries and population's involvement into this sphere.

Therefore, the association will take different measures to propagandize insurance and advertise various kinds of insurance, as well as educational arrangements. AIA will coordinate actions of all insurance companies in the sphere of raising the level of education among population.

AIA will also continue work to improve the legislative basis in the sphere of insurance, make its proposals. Serious work is presently carried out in this direction on the draft law on mandaroty insurance. There are 12 kinds of mandatory insurance in Azerbaijan and we attempt to transform them for their effective functioning in compliance with time requirements.

- How does insurance contribute to the overall economic development of Azerbaijan? How do you assess the situation on the country's insurance market and which shortcomings or gaps are there in the legislative basis?

- Azerbaijan's economy is seriously developing and insurance should not fall behind the accelerated rates of Azerbaijan's development.

By results of 2007, insurance share in the structure of Gross Domestic Product made 0.55%. At the same time, positive trends are observed in the development of this economic sector.  With the improvement of the living conditions of the population, insurance sector will also expand. The insurance market is on the stage of development, as it is a relatively young sphere and insurers are taking measures to expand this business.

As for shortcomings, I consider that in the result of hard work  serious legislative and standard basis has been created through the past  years. I do not see any legislative restrictions, red tape obstacles for normal functioning of insurance companies at the moment.

All depends on degree of companies' independence and their ability to inform the population via AIA about the need to expand insurance by way of raising its knowledge and proving advantages of insurance in their everyday life,

The state, in the person of Finance Ministry, works and controls the activity of insurance companies  to attain raising of their professionalism and competitiveness.

- Whose experience can be applied for development of country's insurance market?

- Each country has its own development specifics and sometimes it is difficult to compare it with the experience of other countries. I think it would be better to take experience of the developed European countries, for example, Germany, England, Austria or the United States, as these countries have serious ratings of financial stability and old traditions in insurance. To assimilate experience does not imply copying it. It implies its use to avert possible mistakes, which may hamper the development of insurance sector. Mistakes are not expected today, as a new law in the sphere of insurance, fully complying with requirements of the fast-developing insurance market of the country, has been adopted.

/Day.Az/