BAKU, Azerbaijan, May 5
By Yusif Aghayev - Trend:
Azerbaijani insurers paid non-life insurance claims in the amount of 40.9 million manat ($24 million) in the first quarter of 2020, showing an increase of 10.5 million manat ($6.1 million) or 34.8 percent compared to the same period of 2019, Trend reports citing a published report of the Central Bank of Azerbaijan (CBA).
In 1Q2020, payments of insurance claims for voluntary types of non-life insurance amounted to 21.9 million manat ($12.8 million), which is 7.2 million manat ($4.2 million) or 49 percent more compared to 1Q2019. Amount of paid private insurance for the first quarter of 2020, are practically the same as in the first quarter of 2019, while amount of property insurance almost tripled, amounting to 11 million manat ($6.4 million).
The main increase in payments accounted for voluntary insurance of property against fire and other risks, which increased 9.5 times and exceeded 6.9 million manat ($4 million). Interestingly, only 5.3 million manat ($3.1 million) of these was paid insurance claims in March 2020.
Payments of claims for comprehensive motor insurance also increased significantly by 26.8 percent, reaching 3.2 million manat ($1.8 million).
Payments in the field of compulsory types of non-life insurance also increased by 3.3 million manat ($1.9 million) or 21.3 percent in Azerbaijan, and amounted to 19 million manat ($11.1 million).
Payment of insurance claims for compulsory liability insurance of motor vehicle owners (OSAGO) increased by almost 20 percent, amounting to 16.3 million manat ($9.5 million). Thus, the loss ratio for this type of insurance amounted to 84 percent in 1Q2020, while in the first quarter of 2019 it was 68 percent.
Insurance claims for compulsory property insurance increased by almost a third, exceeding 1.4 million manat ($0.8 million). But an almost twofold increase in collections for this type of insurance smooths out increased payout rates.
Azerbaijani insurance companies paid the insurance claims worth 77 million manat ($45.3 million) in 1Q2020. The amount of insurance claims was by 30.8 million manat ($18.1 million) more compared to the same period of 2019, which shows an increase in claims by 66.6 percent compared to the first quarter of 2019.
Presently, 22 insurance companies and one reinsurance company operate in Azerbaijan, 18 companies of which operate in non-life insurance.
(1 USD = 1.7 AZN on May 5)