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Khayal Mammadkhanli: State of some insurers may become even more critical

12.05.2020,15:04


May 12, Fineko/abc.az. The pandemic is causing serious damage to the insurance sector, as well as to all sectors of the economy.

The world's giant insurance companies are already making plans to fight for survival. The decline in economic activity around the world and the mobilization of public and administrative resources to fight the pandemic have led to a decrease in insurance premiums. We can say that there is no such type of insurance that there is not a decline.

ABC.AZ was made such a statement by insurance expert Khayal Mammadkhanli, when commenting on the impact of the pandemic on the insurance sector.

He noted that the continuation of insurance cases, which occurred against the background of lower premiums, seriously affects the loss-making of companies: "In particular, captive companies that depend on the parent company or specific businesses are exposed to greater risk. Azerbaijan's insurance sector is also experiencing a decline. However, the state of the insurance sector largely depends on how long the pandemic continues. If our economic and social life can return to its previous pace in a short time, the insurance sector will also suffer less loss. However, in any case, the state of some insurance companies may become even more critical. These companies include insurance companies that operate under banks whose licenses are suspended, insurance companies that have problems with liquidity and capital, and insurance companies whose portfolio often consists of a single, but flawed type of insurance."