Insurance products and services are not considered as essential, so customers exclude insurance costs from budgets during this period.
"The collection of insurance premiums in the retail segment has noticeably decreased; citizens don't always renew even existing contracts for compulsory types of insurance; as for the voluntary types, collections in this area of retail have significantly decreased. Corporate clients so far hold on," said Ulviya JABBAROVA, Chairperson of the Board of the Azerbaijani leading PASHA Insurance company.
Insurers are trying to use all available options to maintain sales during the quarantine. For example, ATA Insurance company managed to prevent a big decline of GWP from individuals thanks to the introduction of an online Casco platform and a large network of offices through which the company arranged home delivery of insurance policies.
Azer ALIYEV, the Chairman of the Ateshgah Insurance company, confirmed that during this period clients often refuse to prolong insurance contracts, and premiums are decreasing both in corporate and individual segments.
Based on the Action Plan, consisting of measures to reduce the negative impact of COVID-19, approved by the Cabinet of Ministers in Azerbaijan in the beginning of April, banks and insurance companies are exempted from making payments to the Central Bank of Azerbaijan in April 2020, Trend reported.