Baku, Azerbaijan, March 18
By Emin Aliyev - Trend:
The fees of voluntary vehicle insurance (CASCO) in Azerbaijan fell by 24 percent compared to the same period last year since the beginning of 2014, the head of the Azerbaijan Insurers Association (AIA) Orhan Bayramov told journalists on March 18.
"The largest decrease was recorded in this segment on the market. Of course, this decline was due to stricter requirements for the issue of car loans which the Azerbaijani Central Bank agreed. The situation worsened earlier than we expected according to the estimates and a decline in the volume of duties in February ought to be 18 to19 percent," he said.
The volumes of CASCO insurance fees are closely linked to the dynamics of issuing car loans as the majority of vehicles are bought by credit in the country.
In the short term, the methods of issuing fees on this type of insurance will be improved, according to Bayramov.
"The decline will not go beyond 25 percent in March and gradually start to decrease. We consider leasing as an alternative. Faced with losses, insurers began to look for other ways to earn and develop this business. Furthermore, this trend led to the development of the whole sphere of leasing which has long been in the shadow of the banking sector," he said.
The share of voluntary vehicle insurance in January and February amounted to 6.35 percent of total insurance premiums.
There are 26 insurance and one reinsurance company in Azerbaijan.
Official exchange rate on March 18 is 0, 7843 AZN / USD.
Translated by S.I.
Edited by S.M.