Loss on compulsory liability insurance of vehicle owners continues to grow in Azerbaijan

By Trend

The loss on compulsory liability insurance of vehicle owners remains at a high level in Azerbaijan, Trend reports referring to the Azerbaijani Central Bank’s data.

Azerbaijani insurers collected insurance premiums for this type of insurance in the amount of 6.9 million manat (over $4 million), while they paid indemnities in the amount of over 6 million manat ($3.5 million), thereby demonstrating a loss worth 87.5 percent in January 2020.

Azerbaijani insurers collected insurance premiums for this type of insurance in the amount of 6.5 million manat ($3.8 million) in January 2019, while they paid compensation in the amount of 5.4 million manat ($3.2 million); thus, the loss ratio was 83.4 percent.

The increase in loss ratio for this type has been demonstrating progressive growth over the past few years. This happens amid the changes in the activity of the participants of the Compulsory Insurance Bureau of Azerbaijan, as a result of which the availability of compulsory types of insurance has increased.

As a result of digitalization, the processes of sale and registration of insurance certificates for compulsory liability insurance of vehicle owners have been optimized. The insurance policies are formalized online.