BAKU, Azerbaijan, April 7
By Zeyni Jafarov - Trend:
The fees on the segment of voluntary civil liability insurance of vehicle owners increased in the Azerbaijani insurance market after February 2021, the Central Bank of Azerbaijan (CBA) told Trend on April 7.
According to the CBA, which is the regulator of the Azerbaijani insurance market, insurance fees in this category increased by 77 percent compared to the same period in 2020 up to 326,500 manat ($192,058).
The CBA stressed that the end of February 2021 was also successfully completed for voluntary insurance of vehicles, in which 5.6 million manat ($3.3 million) of insurance premiums were collected while about 1.7 million manat ($1 million) were paid.
"The amount of fees for compulsory insurance of civil liability of motor vehicles after February 2021 is estimated at 13.8 million manat ($8.1 million) compared to 13.5 million manat ($7.9 million) for the same period of 2020,” the CBA said. “Thus, the market of compulsory insurance of civil liability of motor vehicles from January through February 2021 grew by 2.5 percent."
As for the total volume of voluntary types of insurance, the CBA stressed that a decline of about five percent was observed in annual terms. Thus, the insurance portfolio of companies for voluntary types of insurance decreased from 123.5 million manat ($72.6 million) to 117.7 million manat ($69.2 million).
There is also a decrease in compulsory types of insurance. Fees for this class decreased by 36.5 percent and amounted to about 43 million manat ($25.3 million).
The CBA concluded that for the more transparent, efficient and expanded coverage of the insurance sector, the regulator cooperates with international institutions.
Thus, an agreement was signed between the Central Bank of Azerbaijan and the World Bank in 2020 to receive technical support in connection with the plans to regulate insurance.
Earlier, the head of the Central Bank of Azerbaijan stated that the insurance segment must take a worthy place in the Azerbaijani financial market and despite there are certain problems with technologies and human resources, this issue will be gradually resolved.
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