Caspian Energy (CE): How do you assess the development of the insurance market of Azerbaijan and the role insurance company AXA MBASK plays in this market?

Yavuz Olken, Chairman of the Board, AXA MBASK: Insurance market in Azerbaijan can be described as emerging and still developing market. Obligatory insurances have made a great influence in the market performance in whole. Besides,  bank insurance services support the development in insurance industry; the voluntary insurance products are not so diverse yet and we witness lack of awareness in this field as well. The key goals are to extend and improve the distribution of insurance products and services. Our company Axa Mbask believes that with our unique distribution model “Agent Network” we are considerably supporting development of the insurance market. This is promoting the level of awareness not only in Baku but also in the other regions of Azerbaijan. In addition to the distribution network we also render quality of services; 7/24 service, professionalism of our staff, our international brand and experience are the key leverages both for our company and  for the market in whole.

CE: How do you assess the results of the activity of the company over the period of its operation?

Yavuz Olken: Axa Mbask has been operating in Azerbaijani Market since 2011 after Mbask was purchased in 2010. During the past 2 years we have made certain contributions to establish a technological company, we have re-structured the work of the organization. 

We have also created the unique distribution network “Agents” covering the entire country supported with regional representatives; we propose full range of online insurance solutions as well as new products. Today our share in the market totals 6-6.5% and it corresponds our expectations before the acquisition. 

CE: What were the results of the past year for the company? How successful was the company in the insurance market? 

Yavuz Olken: In 2012 Axa Mbask created 40% growth in terms of Premium income with a total amount of 17.7 mio AZN. Our Professional agents’ network enlarged in almost all towns of Azerbaijan and today we have 75 professional agents, with their professionally designed offices operating under the brand of Axa Mbask. The major factors of our success are our expertise in distribution network management and the quality of service we continuously provide to our clients. We believe that no success is possible in insurance industry unless demands and needs of clients are priority. 

CE: Which instruments is the company introducing for raising its share in the market?

Yavuz Olken: We can say that today as well as tomorrow our agent network can be considered the key for our share in the market and penetration. Therefore we focus our efforts on creating business intelligence tools for the agents and also online solutions. Axa Mbask Academy also plays important role in improving the competency of the agents. In addition new products, campaigns, after claim service, marketing activities contribute in supporting of the growth strategy.

CE: Is the company ready to attract innovations of the international insurance market into the local market? To what extent do services of the company meet international standards?

Yavuz Olken: Starting from 2011 the use of some international market applications was one of the important strategic directions. However we strongly believe that without enough knowledge of the local market needs and necessities it is impossible to create a fruitful business model, therefore we can say that we have had a good balance of international and local levels. 

Regarding to the international standards I can say that we have already introduced Axa International Standards in the company in terms of compliance, ethics, reserving, all financial documentation and reporting. 

CE: What could you tell about company’s portfolio based on share of services for obligatory insurance?

Yavuz Olken: Today like in the overall market dynamics the share of obligatory insurance is the biggest in our portfolio representing covering 38%; this looks rather normal especially in the developing market but we believe that the share of transport, health, property and marine cargo insurance will be increasing in the medium term perspective. 

CE: How do you assess the professionalism of your employees and what work is carried out for improving of their working skills? 

Yavuz Olken: Starting from 2011 we made considerable investments to improve the professionalism, competency and experience of employees. 

Special trainings, more than 10 workshops organized in other countries mainly in Axa Sigorta Turkey, corporate events aimed at team building and establishing of  corporate culture are some of the examples. With the purpose to make our business more valuable now Axa Mbask has become a very transparent company conducting an open dialogue. We are very proud that according to the survey employee engagement scored 95%.

CE: What are the strategic development plans of the company for 2013? 

Yavuz Olken: In 2013 we’ll keep focus on the current issues. Extension of our agents network, new product in personal lines, development in bank assurance activities, operational excellence in the company, best quality of service to our client and agents and profitable growth are key strategic axis for Axa Mbask. Our target is 25% growth in premiums compared to 2012.