Revenues of Azerbaijan's Compulsory Insurance Bureau increase

Economy Materials 22 June 2020 19:10 (UTC +04:00)
Revenues of Azerbaijan's Compulsory Insurance Bureau increase

BAKU, Azerbaijan, June 22

By Yusif Aghayev - Trend:

Revenues of the Compulsory Insurance Bureau of Azerbaijan from calendar fees in 2019 made up 9.2 million manat ($5.4 million), which is 1.3 million manat ($760,000) or 17 percent more than in 2018, Trend reports referring to the bureau’s published financial report.

At the same time, according to the report, the bureau ended the reporting year with a 4.2-million manat ($2.4 million) profit, while 2018 ended with 3.6 million manat ($2.1 million) loss. This was due to growth in the last year’s incomes and decline in the amount of allocations on forming compensation reserves, which lowered from 3.2 million manat (over $1.8 million) in 2018 to over 1.1 million manat ($670,000) in 2019.

The bureau’s total assets in 2019 increased by 16.5 percent compared to the previous year, exceeding 42.4 million manat ($24.9 million). Term deposits increased from 10.2 million manat ($6 million) to 12.6 million manat ($7.4 million), and investment in securities grew from 10.7 million manat ($6.3 million) to over 13.5 million manat ($7.9 million).

Compulsory Insurance Bureau is established and exists as a union of legal entities in accordance with the Civil Code of the Republic of Azerbaijan and subject to the requirements contained in the Law On Compulsory Insurance with the purpose of protection of interests of insured persons and third parties who suffer damages, stabilization and development of the system of compulsory insurance and fulfillment of other duties prescribed by the law.

In accordance with the legislation, there are five mandatory types of insurance in the non-life insurance segment and one type in the life insurance segment in Azerbaijan. In addition, there are several special types of compulsory insurance (military personnel, law enforcement officers and others), the implementation of which is the exclusive responsibility of the State Commercial Insurance Company of Azerbaijan.

The compulsory insurance in Azerbaijan is carried out by insurance companies licensed for a certain type of compulsory insurance and operating under the Compulsory Insurance Bureau.

Currently, there are 15 insurance companies licensed to carry out the compulsory types of insurance, four of which are involved in the field of life insurance, eleven in the field of non-life insurance.

Today, 21 insurance companies and one reinsurance company operate in Azerbaijan.

(1 USD = 1.7 manat on June 22)


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