15:37 - 1.10.2024

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October 1, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) does not see a problem in the fact that some insurance companies are leaving the market of compulsory civil liability insurance for owners of motor vehicles.

ABC.AZ reports that CBA general director Shahin Mahmudzadeh stated about this at the presentation of the Financial Stability Report for the first half of 2024.

Previously, on the basis of a voluntary appeal from Azsigorta, Ipek Yolu Sigorta, A-Qrup Sigorta and Baki Sigorta, their licenses were limited by canceling permits issued for compulsory car insurance.

"For the CBA, it does not matter which insurance company leaves the CTP market. A company providing compulsory car insurance services should be ready to offer customers a hard hat. The insurer should not rely only on compulsory car insurance to ensure its financial stability, it should actively participate in the voluntary insurance market. The withdrawal of an insurance company from any segment related to its commercial interests. If a company believes that a certain type of insurance is unprofitable and it is unprofitable to stay in it, it leaves the market. This is a normal trend," he said.

In addition, the CBA representative noted that development of casco insurance in Azerbaijan directly relates to the age of cars.

"The average age of our cars is quite high, which leads to a high casco insurance premium, which becomes difficult to implement. The CBA is committed to doing everything possible to improve the situation. There are clear development trends in the market, and we expect this sector to grow actively in the next 3 years," Mahmudzadeh said.