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Azerbaijani association talks impact of COVID-19 pandemic on real estate insurance market

Finance Materials 8 August 2020 12:26 (UTC +04:00)
Azerbaijani association talks impact of COVID-19 pandemic on real estate insurance market

BAKU, Azerbaijan, Aug.8

By Fidan Babayeva - Trend:

The impact of the coronavirus pandemic has not passed by the insurance sector of Azerbaijan, which is an integral part of the country's financial market and impacts all spheres, the Azerbaijan Insurers Association (AIA) told Trend.

According to the association, in the first quarter of 2020, a growth by 94 percent was recorded in the volume of compulsory real estate insurance products compared to the same period in 2019.

"However, the pandemic has led to changes in the activities of insurance companies. As a result, sales of compulsory real estate insurance during the period of the infection spread sharply dropped," the association said.

This decline, in turn, affected the amount of insurance fees for the COVID-19 spread period, the organization noted.

"In April-May 2020, payments on real estate insurance increased by seven percent compared to the same period last year. Fees for the same period declined by 26 percent compared to the same period last year," the association said.

Touching upon indicators for the first half of 2020, the association noted that the pandemic has seriously affected the sales of some insurance products.

“Nevertheless, an 11 percent edge-up in insurance premiums over the first five months of 2020 compared to the same period last year is a positive sign,” the association said. “It’s encouraging that the insurance companies strive to get out of this situation, and partly they succeeded. The main goal is to complete the reporting year with minimal damage and maintain financial stability.”

Currently, there are 21 insurance companies and one reinsurance company operating in Azerbaijan.

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