17:00 - 30.09.2024

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September 30, Fineko/abc.az. The increase in payments for compulsory civil liability insurance of motor vehicle owners (compulsory car insurance) in Azerbaijan has increased the loss ratio for insurance companies.

ABC.AZ reports with reference to the Central Bank that in the 8 months of 2024, companies earned 111.49 million manats from compulsory car insurance. This means a 4% increase in savings against last year.

At that, insurance payments increased by another 25% compared to last year up to 80.65 million manats. So, last year, insurers collected 107.62 million manats of premiums and paid 64.77 million manats of compensations within compulsory car insurance.

This therefore increases the ratio of premiums to accumulated fees. The insurance premium is the amount of money that the insured must provide to the insurer in accordance with the insurance contract or the law. That is, these are finances that go to the insurer's cash desk.

If in the first 8 months of 2023 the difference between premiums and payments of insurance companies amounted to 42.85 million manats, then in the same period of this year it fell to 30.84 million manats, or 12.01 million less than a year earlier. In other words, if in the same period of 2023 the difference between insurance premiums and savings fees was 60%, then this year this figure was 72%. This leads to an increase in the loss ratio for companies in this sector.