BAKU, Azerbaijan, April 6
By Yusif Aghayev - Trend:
The introduction of a special quarantine regime in Azerbaijan to strengthen measures to combat the spread of coronavirus infection and decrease in the business activity have much affected the work of domestic insurance companies, Trend reports on April 6.
According to the heads of the country's leading insurance companies, the insurance sector is always particularly sensitive to the processes occurring during a downturn in economic activity. Due to the fact that insurance products and services are not essential items, corporate and individual clients first of all cut their budgets related to insurance costs in the period of reduced business activity.
“The collection of insurance premiums in the retail segment has noticeably decreased; citizens don’t always renew even existing contracts for compulsory types of insurance; as for the voluntary types, collections in this area of retail have significantly decreased. Corporate clients so far hold on,” Chairperson of the Azerbaijani leading PASHA Insurance company’s board Ulviya Jabbarova said.
The Chairman of Azerbaijan’s ATA Insurance company’s board Orkhan Mammadov noted that a slight decrease in the dynamics of collection of insurance premiums by the company occurred approximately for all insurance types, both in the corporate and in retail segments. The company managed to prevent a sharp decrease in collections from individuals during the special quarantine regime due to the introduction of an online Casco contract execution platform, as well as due to the fact that the company has a wide network of branches and service offices, owing to which they managed to arrange home delivery of the policies.
As the Chairman of the Azerbaijani Ateshgah Insurance company’s board Azer Aliyev said, decrease in the country’s business activity affected the company’s collections both from corporate clients, and from individuals. Some of the clients refuse to prolong the existing insurance contracts; and the amount of accounts receivable is growing.
Today, 22 insurance companies and one reinsurance company operate in Azerbaijan.
In accordance with the Action Plan on the implementation of the order of the President of Azerbaijan dated March 19, 2020 “On a number of measures to reduce the negative impact of coronavirus (COVID-19) and sharp fluctuations as a result of coronavirus in the global energy market and stock market, on the economy of the Republic of Azerbaijan, macroeconomic stability, issues of employment in the country and business entities" approved by the Cabinet of Ministers on April 4, the banks and insurance companies in Azerbaijan are exempted from making payments to the Central Bank of Azerbaijan in April 2020.