BAKU, Azerbaijan, July 1
By Yusif Aghayev – Trend:
Azerbaijani insurers collected insurance premiums on compulsory types of insurance worth 113.5 million manat ($66.8 million) from January through May 2020, which is by 6.9 million manat ($4.05 million) or 6.5 percent more than in the same period of 2019, Trend reports referring to a report published by the Central Bank of Azerbaijan.
At the same time, the premiums on compulsory insurance against disability as a result of industrial accidents and occupational diseases reached 26.9 million manat ($15.8 million), which is by 3.7 million manat ($2.2 million) or 15.8 percent more than from January through May 2019.
An increase in premiums on this type of insurance is associated with complete digitalization of all processes. As a result, it was possible to include the concluded labor contracts into the e-database of the Compulsory Insurance Bureau and to ensure control over the implementation of the legislation on compulsory insurance within this type.
In the non-life insurance segment, the premiums on obligatory types increased by 3.3 million manat ($1.9 million) from January through May 2020, reaching 86.6 million manat ($50.9 million), which shows an increase of four percent compared to the same period of 2019.
The premiums on compulsory liability insurance of motor vehicle owners greatly decreased and reached 31.3 million manat ($18.4 million), which is 6.8 million manat ($4 million) or 17.8 percent less than in the same period of last year.
This testifies to the fact that the interest of insurers in this type of insurance continues to decline due to the high loss ratio. This is also connected with the use of special measures in connection with the introduction of a special anti-COVID quarantine regime in April 2020, when the right of citizens to leave the houses was limited.
The amount of the collected premiums on compulsory real estate insurance continues to grow. It reached 23.06 million manat ($13.6 million) from January through May 2020, which is by 6.9 million manat ($4.05 million) or 42.8 percent more than in the same period of last year.
Despite the growth, the dynamics of an increase in the collection of insurance premiums within this type of insurance slightly decreased as it amounted to 66 percent from January through April 2020 compared to the same period of 2019.
This is connected with the fact that the work on the implementation of the e-real estate registry into the base of the Compulsory Insurance Bureau has not been completed yet. This complicates the supervision over the implementation of the legislation on compulsory insurance within this type.
From January through May 2020, the insurance companies of Azerbaijan collected 355.9 million manat ($209.3 million) of insurance premiums, which is 36.6 million manat ($21.5 million) or approximately 11.5 percent more compared to the same period of the previous year.
Today, 21 insurance companies and one reinsurance company operate in Azerbaijan.