Expert: I don’t expect revival at insurance market this year


April 7, Fineko/abc.az. Some types of insurance have observed decline these days.

Commenting on the insurance market situation, expert Kamran Babayev told ABC.AZ that the decline in voluntary insurance is thought to be linked to Covid.

According to Babayev, unlike voluntary insurance, the compensation payments on compulsory insurance of motor vehicle owners have increased, and this trend will continue.

"I think it is necessary to reconsider the insurance premiums and the bonus-malus system. If insurance premiums do not increase, this type of insurance will become an even more serious problem for insurance companies. The insurance premium should be calculated not only on the volume of engine. I don't think this approach is right. The bonus-malus system, too, in my opinion, needs to be changed. The causes of gross violations should be identified, and there should be a significant increase in insurance for the perpetrators of such violations. In this case, drivers will drive their cars more carefully, and the number of incidents will decrease. As a forecast, I can say that I don’t foresee revival of the insurance market this year. In the period of the pandemic the insurance market is expected to stagnate relatively. But I’d like to note that new opportunities for insurance companies will open up in the lands liberated from the occupation, and this will affect the volume of the insurance market," the expert emphasized.

By Elmir Murad