IF MANAGEMENT IS COMPETENT

Azerbaijan's insurance market has entered into a new phase in its development. As was once the case with the bank sector, unreliable and small companies are gradually leaving the market, giving way to more serious and stable companies capable of meeting quality requirements.

One of the unquestionable market leaders at the present time is the International Insurance Company (IIC), the biggest in the country for the size of its charter capital (AZN 8,800,000) which accounts for 21.25 per cent of the combined charter capital of a total of 29 licensed insurance companies operating in Azerbaijan.

Demonstrative statistics

The IIC has been established by the International Bank of Azerbaijan. It was registered on 5 February 2002 and has been operating as a licensed insurance company since 1 April 2002. It is currently providing its clients with high-quality services on 29 types of insurance. 

Throughout its activity, the IIC, having developed into one of the leading companies on Azerbaijan's insurance market, has earned a reputation for meeting customer requirements in commercial and individual insurance. To achieve this, the company has declared individual approach to clients as its key principle. It aspires to create an insurance product meeting stringent customer requirements.

All this has affected the company's statistical indicators. For instance, the volume of the company's insurance bonuses last year reached AZN 6.67 million and insurance compensations AZN 1.61 million, which represents an almost threefold increase over a four-year period.

The make-up of the company's insurance portfolio is also interesting. Thus, last year it was dominated by car insurance - 42 per cent. The next preference of IIC customers was accident insurance (13 per cent), property insurance (12 per cent), medical insurance (10 per cent), liability insurance (8 per cent) and freight insurance (6 per cent). Four per cent of the portfolio was made up of bonuses on mandatory types of insurance, and 5 per cent others.

It is worth mentioning that in comparison with 2005 and previous years, the portfolio breakdown has slightly changed. For instance, in 2003-2004 preference was given to liability insurance (50 and 51 per cent of the portfolio respectively). Only in 2005 did the share of this type of insurance reduce to 18 per cent and in 2006 to a further 8 per cent. However, the share of fees under car insurance considerably increased - from 15 per cent in 2003-2004 to 38 and 42 per cent in 2005-2006. Growth dynamics is also observed with regard to medical insurance, which is gaining popularity these days - from 4 per cent in 2003 to 10 per cent in 2006.

Professionalism means power 

As is evident, the needs of Azerbaijani customers for types of insurance services are changeable and only professional players on the market are capable of accommodating these changes. In this context, the advantages of the International Insurance Company include not only high-quality services and a broad range of services, but also the pricing - the tariffs being offered are optimal and affordable. In addition to that, in order to expand market share, the company regularly provides customers with new insurance products and services.

The ISO 9001-2000 certificate, awarded to the International Insurance Company, is yet another important factor confirming its compliance with international management system requirements. 

The fulfillment of obligations before partners and customers is facilitated by a wide range of insurance services provided by the company, significant insurance reserves, extensive work experience and professional personnel. From the day of its establishment, the IIC managerial and operational personnel have included experienced insurance specialists. The strength of the company is based on the professionalism and experience of its staff which develops and provides insurance services. As a result of effective operation, the company, staffed with qualified specialists and professional managers fluent in several foreign languages and supported by leading insurance and broker companies of the world, currently has access to foreign insurance markets.

Today, one of the company's objectives is to provide insurance support meeting international standards and requirements of the local market. The company is paying special importance to improving public awareness about insurance. With this in mind, the company regularly publishes articles on popular web pages and in other media.