Azerbaijan Insurers Association talks COVID-19 pandemic's impact on OSAGO product

Finance Materials 13 November 2020 12:58 (UTC +04:00)
Azerbaijan Insurers Association talks COVID-19 pandemic's impact on OSAGO product

BAKU, Azerbaijan, Nov.13

By Zeyni Jafarov - Trend:

The product of compulsory motor insurance (OSAGO) has been playing an increasingly leading role in the formation of the insurance market in Azerbaijan during recent years, the Azerbaijan Insurers Association (AIA) told Trend.

According to the association, the product has a strategic and psychological impact for the applying citizens, because a preliminary acquaintance with the insurance market is directly related to OSAGO.

However, it should be noted that the overwhelming majority of citizens continue to consider this product as a mandatory duty in order to avoid fines. This traditional approach is detrimental to the development of this type of insurance, said the AIA.

The association stressed that despite such a negative approach, it can be said with confidence that almost 100 percent penetration was achieved with this product.

Regarding the pandemic period in Azerbaijan, the AIA stated that fees and payments for this type slightly decreased. So, if to pay attention to the insurance report from the beginning of 2020, it can be concluded that, compared to the same period last year, the fees for this insurance product lowered to 7 percent, and payments - to 13 percent.

"Today in Azerbaijan there is a growing tendency towards compulsory motor insurance, as citizens have an extensive understanding of which authorities to apply when they want to get insurance under different circumstances," the AIA summed up.


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