Reasons for reduction in insurance fees revealed - Exclusive


September 11, Fineko/abc.az. As we already reported, some time ago, the Financial Markets Supervision Authority published a report of insurance companies for January-July 2019.

The report shows a decrease in insurance premiums of some companies. In particular, in January-July of this year, Standard Insurance's insurance premiums amounted to 7 million 157 thousand manats, which is AZN 1,550,000 or 17.8% less than the same period last year. It is argued that the reason is that customers do not pay on time, and because of such problems, people's trust in companies is reduced. These are, of course, the claims. But what happens in reality? Did lowering people's trust in companies really affect insurance fees?

We asked this question to insurance expert Hayal Mammadkhanli.

In a statement to ABC.AZ, the expert noted that there are other reasons for the reduction in fees: “The decrease that exists in the insurance market is mainly due to life insurance. As for individual companies, a decrease in their fees is not a market trend, because although a decrease is observed in some companies for a certain type of insurance, it can be noted that the situation on the market as a whole has not changed, but rather, there is growth. And this suggests that the problem does not come from the market, but from the company itself. ”

Posted by Elmir Murad