The Business Year

Abbas Babayev

CEO, Buta Sığorta

The raising of awareness among the population regarding the importance of insurance coverage through educational programs is part of our daily activity. This also applies to health insurance, and we have offered voluntary health insurance from the outset. Meanwhile, compulsory health insurance is relevant for our country and our findings are enabling us to best pursue its implementation. Depending on the results of this work we will stage appropriate educational events. Note here that our country is registering notable international progress. Health insurance provides safeguards for patients and physicians, allows for more predictable operations, and provides a degree of confidence and prospects for both the state and society as a whole.

Anar Bayramov

Chairman of the Board, A Group Siğorta

One of the main obstacles to growth is low awareness of insurance among the population. That is why we, through the Insurance Companies Association and the Ministry of Finance, absolutely need to get the story out and present insurance not just in terms of accident coverage, but also as a savings instrument of wider practicality than people currently imagine. Meanwhile, the tendency for local property to be uninsured makes for a greater problem even than limited interest from the motor branch. Roughly 98% of property in Azerbaijan lacks insurance, be it mandatory or voluntary. There is a huge untapped market here, limited, however, by a degree of mistrust of insurance companies. The Ministry of Finance is working to raise awareness levels, and is aware that corporate transparency, also, is a deciding factor before potential customers sign on the dotted line.

Yavuz Ölken

CEO, Yavuz Ölken

Azerbaijan’s health system has developed rapidly in recent years, with many well-equipped hospitals having been built and numerous specialists training and studying abroad. As in developed countries, we will aim to combine our obligatory and voluntary private medical insurance offering. People have the right to also apply for voluntary medical insurance to access more comprehensive medical packages that cover additional hospitals. The implementation of mandatory medical insurance is not the only source of growth for the company and the wider sector. We have key prerequisites for development; the penetration rate of Azerbaijan’s insurance sector is at 0.7%, whereas in developed markets the figure ranges from 5% to 10%. We forecast that by 2020, insurance per capita will have increased by 250% to AZN100 per person.

Elshad Aliyev

Chairman of the Board of Directors, Alfa Sigorta

In regard to the 2013 results for the market as a whole, group healthcare plans and motor fleet insurance programs have become quite problematic in terms of profitability. We observed an environment of fierce price competition, and consequently a price-sensitive market. In order to gain market share, price is important, as is the distribution network, commissions, and, most of all, quality service. Wherever prices are similar, clients consider other factors in deciding on a company, which primarily means the provision of quality service. We are pleased to have been the recipients of six market awards over the past three years from a number of organizations, among which were the accolade of insurance company of the year, and best quality service product, as these confirm that we do indeed meet the criterion of service quality. The success we achieve from such recognition is significant for a customer-centric company such as ours. We are sensitive to the needs of both customers and agents, which explains our emphasis on sales support for the network that sells the actual insurance product.

Elkhan R. Hashimov

Chairman of the Board of Directors, AzSigorta

In 2013, we have successfully accomplished a corporate restyling. Immediately after that, we announced our innovative “Trust the Future“ insurance campaign to the market. Throughout the campaign, we have been offering motor insurance, which provided broad insurance cover coupled with low insurance rates of approximately 1.5% of the value of the car. The market average is 3%. We have also focused on promotion, adopting a non-traditional approach. We reduced our tariffs for this insurance branch and designed a memorable animated advertisement campaign where two talking cars conveyed a simple message, namely the true benefits of voluntary car insurance. We launched the cartoon on YouTube, Facebook, and other social media channels, which worked out very well.



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