Tariffs on compulsory civil motor liability insurance should grow in Azerbaijan - expert

Tariffs on compulsory civil motor liability insurance should grow in Azerbaijan - expert

General
07 October 2019, 18:37 57
The situation with compulsory civil liability insurance of car owners in Azerbaijan is becoming complicated, Khayal Mammadkhanli, an insurance expert, chairman of the committee of insurance intermediaries of the Azerbaijan Insurers Association, told Trend.
He said that on Azerbaijan’s insurance market, this type of insurance is considered the most unprofitable type of activity for insurance companies.
"Car spare parts, repair services are getting more expensive every day, and the number of road accidents is growing," Mammadkhanli noted.
He added that, against the backdrop of all of the above mentioned, insurance premiums in this segment aren’t considered sufficient to cover the expenditures of insurance companies.
"Therefore, some insurance companies have losses that reach 120-130 percent," he said. "In the insurance market, only one or two companies can profit from compulsory civil liability insurance of motor vehicle owners."

He noted that either the work should be done to reduce the number of road accidents, or the cost of policies for this type of insurance should increase.
"Otherwise, insurance companies will lose interest in this type of insurance," Mammadkhanli added.
From January to August 2019 in Azerbaijan, premiums on compulsory civil liability insurance of motor vehicle owners totaled 67.861 million manats (a specific share of 14.4 percent), which is 4.6 percent more than in the same period last year.
Insurance payments for the reporting period amounted to 42.737 million manats (a specific share of 24.3 percent), increasing by 26.3 percent over the year.