BAKU, Azerbaijan, May 3
By Yusif Aghayev - Trend:
Azerbaijani insurers collected the fees on compulsory types of insurance in the amount of 80.2 million manat ($47.2 million) from January through March 2020, which is 9.04 million manat ($5.3 million) or 12.6 percent more than in the same period of 2019, Trend reports referring to report of the country's Central Bank.
At the same time, the fees on compulsory insurance against accidents at work and occupational diseases amounted to 11.2 million manat ($6.6 million) from January through March 2020, which is 1.8 million manat ($1.05 million) or 11 percent less than in the first quarter of 2019.
The fees on compulsory liability insurance of vehicle owners decreased slightly, amounting to 19.4 million manat ($11.4 million) from January through March 2020, which is 806,000 manat ($474,117), or 3.9 percent less than in the same period of last year.
The amount of the collected fees on compulsory real estate insurance exceeded the figure in the first quarter of 2019 by almost twofold, amounting to 17.8 million manat ($10.5 million).
This was stipulated as a result of the hype in the market at the end of last year due to the information about the fines to be applied to the individuals who evade the conclusion of compulsory insurance contracts on this type, Trend previously reported.
The hype continued in January 2020 when the monthly record for collecting the fees in this type was exceeded - 10.9 million manat ($6.4 million) per month.
However, after a statement made by Executive Director of the Azerbaijani Compulsory Insurance Bureau Rashad Ahmadov that it is impossible to impose the fines envisaged in the legislation without corresponding changes in the legislation, the dynamics of fees decreased, amounting to 3.8 million manat ($2.2 million) in February and 3.1 million manat ($1.8 million) in March.
Nevertheless, these indicators greatly exceed the data for the same months of the previous years, which testifies to an increase in interest in this type of insurance, mainly due to the broad enlightenment.
The amount of the collected fees on other types of compulsory insurance was observed. Thus, the fees on compulsory liability insurance related to the use of real estate amounted to 121,800 manat ($71,647) in the first quarter of 2020 compared to 102,600 manat ($60,352) in the first quarter of 2019, showing almost 20 percent growth while the amount of fees on compulsory passenger insurance increased by almost a third, reaching 41,600 manat ($24,470).
Azerbaijani insurance companies collected the fees worth 240.8 million manat ($141.6 million) in the first quarter of 2020. The fees worth 39.6 million manat ($23.3 million) were collected which is approximately 20 percent more than in the same period of 2019.
Today, 22 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on May 3)