15:20 - 25.07.2019

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July 25, Fineko/abc.az. After the publication of the indicators of the 1st half of the year in the insurance sector, it became known that the insurance premiums observe a decline of AZN 35-40 million compared with the 2018 same term.

What is the cause?

We asked this question to Ilkin Ibragimov, an expert in the field of insurance.

The expert noted that the main factor affecting the reduction of premiums is changes made earlier this year to the Tax Code on life insurance. He pointed out that if earlier part of contributions subject to be transferred to the Ministry of Labor & Social Protection was drawn to life insurance premiums with a discount, now these subsidies have decreased since the beginning of the year.

"This has had an impact on insurance premiums and compensation payments. But since early 2019, the use of agricultural insurance and compulsory health insurance will undoubtedly lead to a fantastic increase in insurance premiums next year. I think if the property insurance premiums increase this year up to the target, it will be possible to collect insurance premiums in the amount of last year's level," the expert emphasized.