Losses of some Azerbaijani insurance companies reach 130% - expert

Business Materials 9 July 2019 14:26 (UTC +04:00)

Baku, Azerbaijan, July 9

By Kheyraddin Nasirzade - Trend:

Azerbaijani insurance companies, which mainly focus on compulsory types of insurance of civil liability of motor vehicle owners, have difficulties in regulating the insurance portfolio, expert in insurance and Chairman of Committee of Insurance Intermediaries of the Azerbaijan Insurers Association Khayal Mammadkhanli told Trend.

He said that losses of these companies reach up to 130 percent. He noted that the reason for such a high figure is that such companies don’t expand the scope of their activities, focusing only on mandatory types of insurance.

He added that if these companies don’t focus their efforts on the development of voluntary types of insurance and don’t diversify their portfolio, they may face negative consequences in the long-term prospective.

The expert believes that it is necessary to regularly monitor and develop new insurance products.

In January-May this year, Azerbaijani insurance companies collected premiums worth 319.272 million manats, which is 9 percent less than in the same period last year. In the voluntary insurance market, the volume of premiums decreased by 16.7 percent and reached 212.707 million manats. The amount of payments on voluntary types of insurance decreased by 8.3 percent to 64.023 million manats, which makes 68.3 percent of all payments.