Hull Insurance Losing Ground

Once the most popular form of voluntary insurance (Hull for cars) loses not only growth rate, but also position. It is not surprising against the background of the ban last March by the Central Bank of Azerbaijan (CBA) based on the rules regulating credit risks.

The ban has led to the fact that the issuance of car loans providing most of the sales of insurance policies was actually suspended. Hence the result; in January-May total premiums for hull insurance totaled 12.9 million manats (minus 10% to June 1 of last year) and the sixth line in absolute terms. With 39,950,000 manats it was surpassed by VHI and 4 other positions. By the way, last year the decline was more pronounced - 33.5% - to 37.8 million AZN.

Payments of insurers on Hull insurance by June 1 totaled 10.3 million manats (minus 8.4%). In general, from January to May on charges of Hull insurance premiums were 8.6% and payments were 20.9% of the total market of general insurance (non-life insurance). By the way, according to the State Customs Committee, imports of cars into Azerbaijan halved from January to June. --17D-