Situation at insurance market: market reduced and premiums decreased


April 6, Fineko/abc.az. The analysis of the insurance market for the first months of 2021 shows that the insurance market has relatively declined, insurance premiums decreased, and compensation payments increased.

ABC.AZ was stated about this by insurance expert Kamran Babayev, when commenting on the current state of the insurance market.

He noted that the premiums reduced both on mandatory and voluntary types of insurance.

According to the expert, compared with Jan-Mar 2021, there is a decline on mandatory real estate insurance.

"At the beginning of 2020 people insured their homes to avoid fines. This year, some of those people did not renew their contracts. I’d like to note that the principle of compulsory real estate insurance should change. The liability of citizens (homeowners) to their neighbors or other third parties must be insured in mandatory manner, and an electronic control mechanism must be provided for this purpose. And he can insure an apartment owned by a citizen on a voluntary basis. Without an electronic control mechanism, this type of insurance will not develop in the coming years."

By Elmir Murad