Hull Insurance Continues to Sink

Azerbaijan Insurers by November 1 collected under the voluntary motor insurance (hull insurance) in the aggregate 24.7 million manat (minus 22.1% to the reporting period of last year).

Turan was told by the press secretary of the Association of Insurers of Azerbaijan (AIA) Vafa Rustamova this is the main message of the local market over the past 10 months. This situation determined the need for tomorrow's meeting with representatives of the companies and the Ministry of Finance to discuss the issue of tariffs in this segment.

The event will discuss the transition to the calculation of insurance rates, depending on the loss ratio. Today, for the competitiveness of insurers reduce rates, but in these circumstances, their work becomes unprofitable.

In addition, last year reduced fees in this segment that was due to the reduction in the portfolio of banks on car loans this year is directly related to the decline in car sales in the country. Proportional reduction in premiums and decreased the level of payments on an insured event - November 1, they were at a level of 20.3 million manats (minus 13.7%). The reason for this was reduction in the number of contracts.

By the way, this is not the first year that fees at once so popular hull insurance cannot stand the "pressure" of other types of insurance. So, last year the premiums of insurers in this segment were less than a third (33.5%) than in 2013. --17D-