Why not developed insurance for the downtime?
Azerbaijani insurance companies can not "roll out" of such an important segment, as protection against the risks associated with downtime (manufacturing, construction, events and businesses, etc.).
For seven months of 1850 raised AZN premiums, that is, either can not convince, or do not bind against the proceeds from Hull, VHI, CTP plus a couple of corporate positions. By August 1 last year, 1,400 were collected in 2011 and 2010 - a symbolic sum of 400 and 350 manat, and before that position as if there was.
According to experts in the field of construction downtime plagued the sector (especially it was evident from January 2009 to December 2012 against the background of the crisis and scandals with the construction and pyramid schemes), because the owners of construction projects must be initiated contracts of this kind. In addition, the lack of impressive premiums on the risks is an indicator of the lack of a free economy.
Head of the Public Service of Insurance Supervision Ministry of Finance Namik Khalilov said that the insurance market of Azerbaijan is in the process of formation and establishment because it is necessary to start with compulsory insurance to instill a culture of public consumption of this type of service.
In January-July 28 insurance companies were 228.97 million manat premiums at 68.88 million manat (approximately 30.1%) of payments by a factor of 0.3. In the world of theory and practice, the payout ratio (Claims Level Ratio) should be in the range of 0.4 - 0.7.
Attention of the Ministry of Finance - Azerbaijan has a payout ratio of 0.05 or lower, indicating their unwillingness to pay for an insured event and the purely corporate activities. There are those companies that can not get out because of the pressure on the former monopolists lines premiums, for example, voluntary health insurance, but the old contracts are paid huge amounts of money by a factor of 0.9-0.95. And this is a direct way with favorable financial structures to artificial bankruptcy. --17D-
Economics
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