At the beginning of the year, "Nairi Insurance" LLC was awarded a B1 rating by the international prestigious rating agency "Moody's" with a stable outlook. "Nairi Insurance" is the first insurance company in Armenia to be rated by "Moody's".
What does this rating mean, what does it give to "Nairi Insurance" partners and clients, and what does compliance with international standards mean for the company? Banks.am had an interview and discussed the details with Arpi Oskanyan, an experienced Head of Internal Audit Department of Nairi Insurance.
- The rating process was started by "Nairi Insurance" company last year. Please explain the process.
- Generally, to get a rating, the company went through several stages. Of course, first of all, this is our top management decision. After having it, the company communicates with the rating company about the issue, and then the stage of agreement and signing of contracts begins. Usually, it lasts 4-5 months. After the conclusion of the contract signing phase, the actual rating process begins. This is already the main stage that the executive body of the company should implement. We spent about 4 months on this stage. The speed with which we were able to get the rating was because the company possessed and had all the necessary financial information ready. We didn't spend time collecting any data, we just provided it on demand. We had several meetings, the most intensive work with the provision of information lasted about 1 month, and we received the rating decision very quickly.
In summary, the length of the process depends entirely on how willing you are to provide the required information. "Nairi Insurance" was able to respond to all questions quite quickly and solve all the issues very easily.
- It is not an easy thing to get a rating from "Moody's" on the first try, even with a good result. How did "Nairi Insurance" succeed in this?
- "Nairi Insurance" received a B1 credit rating with a stable outlook, which is a good indicator for the company. The whole "secret" is that we are one of the largest participants in the market, and besides, we have a long history. In other words, the company did not deal with the problem of providing information that you do not have, and some may have problems not just because of technical reasons, but because they may not have a track record. We have a stable position in the market, high profitability indicators, etc. We have presented information for the last 4-5 years and even more. I think this was one of the reasons for getting a fairly good rating.
No doubt, our goal is to improve our ranking, and we hope that next year it will become a reality. It is also important to note that the ratings are not provided solely by evaluating the company's financial condition, stability and risks. It is a certain "guarantee" and it is granted taking into account both state, regional and company risks.
- Why is this rating important for the company? How is the B1 rating perceived by partners?
- Everyone knows that insurance companies, as participants in the financial market, are controlled by the Central Bank. We work according to a national state legislative basis. "Moody's" rating allows us to say that, in addition to compliance with domestic legal acts and the assessment of domestic bodies, there is an independent body that has evaluated our work following international business standards. In our opinion, this is very important, particularly for foreign cooperation.
In working with partners, this rating gives the most important thing: confidence in financial stability and funding sources. they are transparent, open, declared, and this is a very significant indicator of cooperation.
We are sure that the rating is also important for the economy of Armenia because the "Nairi Insurance" company is included in the list of the first 1000 large taxpayers.
- And what does this rating give to customers?
- This proves to our clients that "Nairi Insurance" company is creditworthy, solvent, has solid management foundations and works following international standards. We are sure that this rating increases the trust between clients and "Nairi Insurance" as a financial institution.
- What works does "Nairi Insurance" carry out to maintain and improve the achieved rating?
- Indeed, the next stage of our work is in the process. "Moody's" evaluates the company concerning different levels of management, financial indicators, etc. We are working intensively with our partners at "Moody's" to have a clear idea in which direction we should move and what additional measures we should take to improve the rating.
In general, "Moody's" B1 rating allows saying, on the one hand, that we have stable financing, profitability, and good financial indicators. At the same time, any rating shows the company once again the possibility of improving management and risk assessment systems. I think that perhaps this is the most important thing for the management of the company. We do not want to stand on some level. The company is in a position to improve its rating, which means that we will work on all the risks pointed out to us and the proposed improvements.
- "Nairi Insurance" is also certified with ISO qualification. As a result of the audit conducted by the German auditing company TÜV Rheinland, you have qualified with service quality 9001 and information security 27001 certificates. What do these certificates prove about the company's work?
- I am sure that our customers feel the impact of these standards on the company. Working within the framework of international standards means moving to a completely new level of thinking. "Nairi Insurance" never aimed to just have a certificate.We have the task of complying with the certificate, and all the audits we pass prove it.
ISO standards are regularly revised and updated, and the next step for the company is to comply with these updated standards.
We believe that our partners, both individuals and legal entities, are our main asset, and ISO 9001 certification helps us serve them by international quality standards. From the point of view of economic results, quality customer service leads to financial stability, financial security and continuity of economic activity.
The ISO 27001 certificate documents the compliance of the company's information security systems with international standards, which is also confirmed every year by an appropriate audit.
This certification means that we do everything possible to protect our customers' confidential information. Compliance with this standard is also confirmed by one of our slogans: it's safe with us. The company manages information flows by grouping and classifying information assets. "Nairi Insurance", an insurance company whose portfolio includes medical insurance, realizes that it is dealing with one of the most sensitive topics - personal health. This is a huge responsibility.
From the point of view of information security, we work in two directions: internal-
by developing corporate culture. As you know, Armenia is a country where you can be told confidential information with the "I'll tell you, but let it stay between us" (it’s a secret) approach and external - by working with cooperating companies, developing clear contractual clauses on confidentiality and strengthening inter-partner relations. And again, complying with international standards first of all it means changing the way of thinking. If you don't, you'll just have a piece of paper taped to the wall.
The improvement of our position in the market, the growth of the company's portfolio, and the satisfaction of the customers prove that the company is moving in the direction of continuous development.
Interview: by Gayane Yenoqyan
Source:Banks.am