BAKU, Azerbaijan, April 1
By Yusif Aghayev - Trend:
The dynamics of developing the collection of the premiums on compulsory types of insurance by the Azerbaijani insurance companies in February 2020 showed the record market growth by exceeding the amount of premiums in both January 2020 and February 2019 by many times, Trend reports referring to a report of the Azerbaijani Central Bank.
In general, Azerbaijani insurance companies collected insurance premiums in the amount of 190.7 million manat ($112.2 million) in February 2020, which is 78.7 million manat that’s $46.3 million (an increase of 70.2 percent) more than in January 2020 and 57.2 million manat ($33.6 million) more than in February 2019 - an increase by 43.6 percent.
The fees in the compulsory insurance segment increased by many times, reaching 67.3 million manat ($39.6 million), which is 3.2 times more than in January 2020 (20.8 million manat that’s $12.2 million) and 2.3 times more than in February 2019 (28.9 million manat that’s $17 million).
The growth of premiums in the field of compulsory insurance against accidents at work and occupational diseases amounted to 1.4 million manat that’s $823,529, increasing up to 7.7 million manat ($4.5 million) compared to February 2019 (an increase of more than 22 percent), and liability insurance for motor vehicle owners - 0.8 million manat ($0.5 million) increased up to 13.5 million manat ($7.9 million) compared to February 2019 (an increase of 6 percent).
Compulsory real estate insurance showed a record growth of almost 86 percent compared to February 2019, increasing up to 14.7 million manat ($8.6 million). This was connected with the hype at the end of last year, provoked as a result of the information about the massive application of penalties for individuals who did not insure their property.
In February 2020, the collection of premiums on compulsory insurance of passengers against accidents greatly decreased by more than two times from 30,100 manat ($17,705) to 14,100 manat ($8,294).
Five compulsory types of insurance are carried out in the non-life insurance segment and one type in the life insurance segment in accordance with the legislation in Azerbaijan.
Moreover, several special types of compulsory insurance are envisaged (military personnel, law enforcement officers, etc.), the implementation of which refers to the State Commercial Insurance Company of the Republic of Azerbaijan.
Compulsory insurance in Azerbaijan is carried out by insurance companies licensed for a certain type of compulsory insurance. These companies are members of the Compulsory Insurance Bureau. There are currently 16 such companies.
There are 22 insurance companies and one reinsurance company in Azerbaijan.