AZERBAIJAN: Motor insurance premiums collection drastically decreased in April 2020

23 June 2020 — Marina MAGNAVAL
Motor insurance GWP of Azerbaijan drastically dropped in April 2020, as Trend reported, referring to the published report of the country's Central Bank. Motor Hull premiums reached only AZN 1.7 million (~USD 1 million), 81% less compared to April 2019, while MTPL premiums decreased by 24%, to AZN 6.8 million (~USD 4 million).

The main factor for the Motor Hull premiums decline was the quarantine regime introduced to prevent the virus spread, which led to a big reduction of contract renewals. Many insurers were not able to provide online support for contract conclusion. At the same time, declining car lending rates became one of the positive factors supporting premium collection of Motor Hull.

The main cause for the MTPL premiums decrease was driven by quarantine restrictions of movement, which led to a significant reduction in the number of citizens using their vehicles. Market leading insurance companies inform that premium collection slightly increased after the removal of these restriction; however, more precise data to demonstrate this phenomena will be available at the end of June.

In spite of Motor GWP decreases, the total GWP of the Azerbaijani insurers in April 2020 amounted to AZN 70.5 million (~USD 41.4 million), which is over 10% more y-o-y.



244 views
Share |