BAKU, Azerbaijan, July 30
By Fidan Babayeva - Trend:
The impact of the coronavirus pandemic (COVID-19) has not spared the insurance sector of Azerbaijan, which is an integral part of the country's financial market, the Azerbaijan Insurers Association (AIA) told Trend.
The AIA noted that the COVID-19 pandemic is affecting all spheres of daily life.
The reduction in the use of cars due to the special quarantine regime applied in the country from April through May has led to a decrease in the amount of payments for road accidents compared to other months, added the AIA.
"In April 2020, there was a decrease in payments for Compulsory Civil Liability Insurance of Motor Vehicle Owners (OSAGO) by 23 percent compared to April 2019. The continuation of isolation measures in May also led to a 94 percent decrease in payments over the year," the association said.
The association emphasized that the restrictive measures taken in April and May led to the extension of OSAGO contracts.
In the reporting month, there was a decrease in fees by 43 percent compared to the moth last year. In general, a decrease in fees by 18 percent was observed in the first five months of this year compared to the same period of 2019, the association said.
"Regarding the forecasts for 2020, the association said that the pandemic led to a sharp change in experts' forecasts for the global insurance market as well. If experts expected the insurance market to grow by 6-7 percent by 2020, then in the current situation the main goal is to end the year with minimal damage and maintain financial stability," noted the AIA.
Currently, there are 21 insurance companies and one reinsurance company in Azerbaijan.
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