Azerbaijan, Baku, April 23 / Trend U. Ismayilova /
The Azerbaijani Insurers Association established special committee that must analyze adequacy of a service cost offered by companies, chairman of M BASK insurance company's board, head of the association Jamil Melikov said in his interview to Business Time magazine.
Presently, one company can offer a certain service for $100, another company the same service for 50 manat but the third company for 20 manat.
"The association tries to prove its insurers that a service worth 100 manat is very expensive today. It is necessary to reduce prices, minimize its profitability within any services for clients not to put insurance off," Melikov said.
The association considers that one should not reach 20 manat. It is impossible to dictate because each company has its own price-forming tools, methods.
"Insurers themselves must change it. The most important thing is to choose methods of price-forming of our products and protect some insurance companies form great dumping. Finally, it can lead to great problems," Melikov said.
Presently, they will be able to solve any problems connected with disadvantage of cash. But it is possible to provoke great problems in future when it is necessary to conduct great payments, he said.
So, it is impossible to withstand in this situation without grave financial reserves.
"Presently, complex of actions held by the association and state insurance control were directed for insurers to avoid problems connected with crisis," Melikov said.
There is innovation in accounting allowing insurance companies to manage their assets properly, allocate them effectively, ensure certain liquidity and paying capacity.
The Azerbaijani Insurers Association was established in December 2006. Its supervising council comprises of 5 companies MBASK, Standard Insurance, International Insurance company, Azersigorta, Ateshgah.
On April 23, the official exchange rate is 0.8035 manat to $1.
Do you have any feedback? Contact our journalist at [email protected]
