BAKU, Azerbaijan, Mar. 10
By Yusif Aghayev – Trend:
The loss ratio for voluntary types in the insurance market of Azerbaijan increased in January 2020, Trend reports referring to the Central Bank of Azerbaijan (CBA).
In general, Azerbaijani insurance companies paid 26.7 million manat ($15.7 million) of insurance claims in January 2020. The loss ratio with the collection of insurance premiums in the amount of 112 million manat ($65.8 million) amounted 23.9 percent in January 2020, which indicates an increase compared to January 2019. The loss ratio was 19.5 percent in January 2019.
For voluntary types of insurance, the loss ratio amounted to 21.1 percent, fees - 91.2 million manat ($53.6 million), and payments - 19.2 million manat ($11.2 million)), which is much higher compared to January 2019. In January 2019, the loss ratio was 14.7 percent.
In the traditionally unprofitable segment of voluntary life insurance, the loss ratio increased by almost 10 percent compared to January 2019 and amounted to 74.5 percent. Of course, this mainly happened due to accumulative life insurance, in which it also increased at a loss, amounting to 89.8 percent. In January 2019 this indicator was 87.7 percent.
In January 2020, in the segment of voluntary types of non-life insurance, the loss ratio was 9.5 percent, which is 1.73 times more compared to January 2019. At the same time, in personal insurance the coefficient increased by more than 2 times and amounted to 11 percent. In January 2019 this indicator was 4.5 percent. The exact same indicators are demonstrated by the dynamics of loss ratio on voluntary health insurance, which forms 99 percent of the insurance premiums collected in the reporting month.
It should be noted that the loss indicators for voluntary health insurance in January 2020 traditionally differ from the average annual, which, as a rule, are in the range of +/- 60 percent. This is due to the fact that in January 2020 the SOCAR State Oil Company of Azerbaijan employees voluntary health insurance contract is updated, which accumulates more than a third of all collected premiums on the market within this type.
The loss on voluntary property insurance slightly decreased in January 2020, amounting to 6 percent, against 8.6 percent in January 2019. The loss ratio for comprehensive motor insurance (CASCO), the most unprofitable type in this segment, sharply decreased, amounting to 14.1 percent, as opposed to 36.1 percent in January 2019. In the traditionally low-loss segment of civil liability insurance, trends continue, the loss ratio, as in January 2019, does not exceed one percent.
Today, 22 insurance companies and one reinsurance company operate in Azerbaijan.
(1 USD = 1.7 AZN on Mar. 10)
