Expert explains why voluntary car insurance declined sharply


February 24, Fineko/abc.az. The Central Bank has released statistics for January 2021. The most attention in the statistics is drawn to the 2.3-fold decrease on voluntary car insurance. So what is the cause of such a sharp fall in voluntary car insurance?

ABC.AZ reports that insurance expert Ilkin Ibragimov links this cause with the fact that when assessing risks the insurance companies include the rise of the price of machine parts and other risks in premiums. He stated that the tightening of insurance payments is also one of the factors influencing the decline.

"This January’s premiums on compulsory motor insurance totaled AZN 7.106 million (almost AZN 150,000 more versus 2020 – AZN 6.925 million) and payments (January 2021 – AZN 4.708 million) were AZN 1.3 million less than last year (January 2020 – AZN 6.059 million). I think this figure is a serious signal for the insurance sector, and thus they should make relevant conclusions".

By Elmir Murad