Politics

​How will the pandemic have an impact on compulsory insurance types?

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© Report/Elchin Murad

No sharp decline or increase is expected on compulsory insurance types in Azerbaijan as at the end of the second quarter, Executive Director of Compulsory Insurance Bureau (CIB) Rashad Ahmadov told Report.

“Mild rates are expected. We saw a slight decline in the number of insured people while analyzing the compulsory insurance of civil liability of the “Green card” vehicle owners because there is a restriction on entry and exit at the border. Only trucks are allowed to carry a load from the country. The insurance of trucks increased. Premiums from compulsory real property insurance and compulsory insurance of civil liability associated with the exploitation of real property respectively went up 66.6% and 5.3%,” he said.

Ahmadov also shared his expectations pm compulsory insurance of civil liability of vehicle owners: “We this the activity in this type of insurance will be mild. Because this is a compulsory insurance type and the softening of the measures will cause overuse of transport facilities. And it will lead to the restoration of demand for compulsory insurance. If you don’t use your vehicle, there won’t be any liability, and you can refuse to get insurance coverage. Therefore, this situation can cause a decline in premiums. However, this figure will come back as the quarantine regime is softened.”

According to him, no severe negative impact is expected from the pandemic on the insurance companies: “Because Central Bank of Azerbaijan has taken preventive measures. Central Bank refused allowances, recommended us to postpone the membership fee until September 30. We sent letters with positive opinions to our member companies. There were postponements on payment of the membership fee. All of these are preventive measures. I am sure that these measures will serve the appearance of revival.” 

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