AZERBAIJAN: loss ratio of the compulsory liability insurance of vehicle owners grew by more than 4% y-o-y in January

11 March 2020 — Marina MAGNAVAL
In January 2020, collected GWP for compulsory liability insurance of vehicle owners amounted to AZN 6.9 million (~USD 4 million), while the paid claims exceeded AZN 6 million (~USD 3.5 million), resulting in a loss of 87.5%, Trend reports based on the Azerbaijani Central Bank's data.

Compared with a year ago, in January 2019, the GWP amount was about AZN 6.5 million (~USD 3.8 million) and paid claims amounted to AZN 5.4 million (~USD 3.2 million), thus the loss ratio stood at 83.4%.

As the experts note, over the past few years the loss ratio has been growing. Among the main reasons, they underline changes in the activity of the participants of the Compulsory Insurance Bureau of Azerbaijan, which increase availability of compulsory types of insurance. As a good example, digitalization helped to optimize selling and issuance of insurance certificates that now can be formalized online.
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