BAKU, Azerbaijan, Mar. 6
By Yusif Aghayev - Trend:
Health insurance sector in Azerbaijan showed a significant increase in January 2020, Trend reports referring to the data published by Central Bank of Azerbaijan (CBA).
The country's insurance companies collected health insurance premiums in the amount of 51.8 million manat ($30.4 million) in January 2020, which is 6.2 million manat ($3.64 million) or 13.6 percent more compared to January 2019. The amount of paid insurance claims increased by 3.6 million manat ($2.1 million) or 2.8 times and amounted to 5.7 million manat ($3.35 million).
It is noteworthy that the loss statistics for this type of insurance for January 2020 do not present an overall picture, as in January 2020, the largest contract in the segment on health insurance for employees of the Azerbaijani State Oil Company SOCAR is being updated, the amount of insurance premiums for which exceeds 35 million manat ($20.5 million), collecting more than a third of all market fees under this type of insurance, the bank said. Voluntary medical insurance (VMI) is actually one of the most unprofitable types of insurance and is in third place in Azerbaijan’s insurance market by this indicator after cumulative life insurance and compulsory liability insurance of vehicle owners.
So, the collection of health insurance premiums amounted to 87 million manat ($51 million) for the entire 2018, and the amount of payments - 59.4 million manat ($34.9 million), a loss ratio of 68.3 percent. In 2019, the above indicators amounted to 95.8 million manat ($56.3 million) and 60.4 million manat ($35.5 million) respectively, with a loss ratio of 63.2 percent. Approximately similar loss indicators for Voluntary Health Insurance (VHI) were noted in previous years.
Trend wrote earlier that expectations in the market due to the introduction of Mandatory Health Insurance (MHI) throughout the territory of Azerbaijan from October 1, 2020, are associated with a decrease in the collection of insurance premiums for VHI, since this trend is observed in world practice.
Voluntary Medical Insurance is a type of personal insurance that covers the expenses associated with the need for medical advice, examination, treatment or other expenses for medical services. As part of the relevant insurance programs for VHI, insured persons can receive free medical care in medical institutions.
There are 22 insurance companies and one reinsurance company in Azerbaijan. No more than half of them are involved in professional health insurance.
(1 USD = 1.7 manat on Mar. 6)