Compulsory vehicle insurance in Azerbaijan reaches its peak

Finance Materials 7 November 2018 17:27 (UTC +04:00)

Baku, Azerbaijan, Nov. 7

By Taleh Mursagulov - Trend:

The Compulsory third party liability insurance of motor vehicles (CMTPL) has almost reached its peak in the insurance market of Azerbaijan, the Chairman of the Azerbaijan Insurers Association (ASA), Mustafa Abbasbeyli, told Trend Nov. 7.

"In terms of fees and penetration, the CMTPL insurance is the leader in the insurance market of Azerbaijan," the chairman of the association said, while noting that life insurance is already approaching CMTPL insurance in terms of fees, and it is likely that at the end of this year, the life insurance will become the leader of insurance market of Azerbaijan.

Abbasbeyli noted that presently some improvements are being made on CMTPL insurance, which will allow for increasing insurance fees by 10-15 million manats in 2019. The growth will be provided not due to the penetration of CMTPL insurance to the market, but due to the improvement of the bonus system, the improvement of the policy system.

"We think that we will also be able to reduce cases of fraud with CMTPL insurance," Abbasbeyli said.

Speaking about expectations for 2019, Abbasbeyli noted that a reduction in fees for certain types of insurance is not expected.

The association is optimistic and believes that all types of insurance will somehow develop, he said.

In particular, the chairman of the association noted that the growth in agricultural insurance is expected.

"Today, we work at achieving the growth in the field of compulsory real estate insurance and we expect an improvement of indicators in this area," Abbasbeyli said.

As for the other types of insurance, the chairman of the association noted that an increase in the range of 10-15 percent is expected.