BAKU, Azerbaijan, April 28. Compulsory insurance premiums in Azerbaijan declined sharply in the first quarter of the year, even as payouts surged, Trend reports, citing the Central Bank.
From January through March, insurers collected 65.476 million manats in compulsory insurance premiums — a drop of 28.2% compared to the same period last year.
At the same time, payments to policyholders rose significantly. Payouts increased by 27.4% year-over-year to reach 38.137 million manats.
The figures indicate that insurers paid out 58.2 manats for every 100 manats collected in compulsory insurance premiums during the quarter.
Despite the downturn in compulsory insurance, Azerbaijan’s overall insurance market posted modest growth. Total premiums across all types of insurance climbed 4.7% to 417.753 million manats.
However, total payouts grew at a much faster pace, jumping 33.2% to 218.456 million manats over the same period.
The data points to rising claim costs and increasing pressure on insurers, even as overall premium volumes continue to edge higher.