Biggest voluntary medical insurance contract remains valid in Azerbaijan
BAKU, Azerbaijan, Feb. 27
By Yusif Aghayev – Trend:
The biggest voluntary medical insurance contract in Azerbaijan concluded between the State Oil Company of Azerbaijan (SOCAR) and Pasha Insurance company remains in force, Trend reports referring to SOCAR.
The compulsory health insurance does not cover employees of the oil industry, including SOCAR employees. Accordingly, the medical insurance of the company’s employees is valid as before.
This contract entered into force on January 1, 2012. Presently, the amount of insurance premiums within this contract exceeds 35 million manat ($20 million) per year, which is about 36 percent of all fees of this type in the insurance market.
The compulsory medical insurance is gradually introduced in Azerbaijan in 2020. This cannot but affect the changes in the voluntary medical insurance market in Azerbaijan, Trend reported earlier.
The withdrawal of the biggest client from the market could have a big impact on the development of this type of insurance in the future.
The Azerbaijani insurance companies collected insurance premiums within voluntary medical insurance in the amount of 95.8 million manat ($56.3 million) in 2019, which demonstrated the growth by more than 10 percent compared to 2018.
At the same time, the total amount of insurance payments made for this type amounted to 60.5 million manat that’s $35.6 million (an increase of 1.7 percent). The voluntary medical insurance is an unprofitable type, the loss ratio in accordance with the financial results of 2019 amounted to 63 percent.
The company is a leader in the Azerbaijani non-life insurance market. The company’s authorized capital is 50 million manat ($29 million). It renders insurance services on 36 voluntary and compulsory types of insurance for 300,000 corporate and individual clients.
As a result of the activity in 2019, the company collected insurance premiums in the amount of 150.2 million manat ($88.3 million) and paid insurance claims in the amount of 52.8 million manat ($31 million), ranking second among the local insurers.
Presently, 22 insurance and 1 reinsurance companies operate in Azerbaijan.