ASA: leasing to substitute financial institution automobile lending and make sure insurance coverage industry improvement
Baku, Fineko/abc.az. Azerbaijani insurance coverage businesses have located an different to financial institution motor lending, which was the major supply of earnings for most firms.
Azerbaijan Insurers Association’s (ASA) head Orhan Bayramov has stated that final month it was observed reduction of voluntary car insurance coverage by 24% against the forecast of decline at 17-18%.
“Reduction of car insurance is associated with the limitations of offering automobile loans by local banking institutions. An alternative of function with banking car insurance will be connecting to leasing. As a result, in March decline in income on automobile insurance will not exceed 25%, and since April it is anticipated slowdown in the pace of decline in the market. Use of leasing as an option instrument on car insurance coverage will also lead to the development of leasing companies because of existing great demand in the market,” Bayramov said.
He factors out that the mandatory car insurance in the final month decreased by 1%, and compensation payments improved by 21%. Concerning the market place forecasts for 2014 the ASA head explained that throughout the initial 2 months the premium growth reached 16% and payments 17%.
“Ahead of the finish of 2014 it is forecasted a rise in premiums of insurance coverage companies by 16-twenty%. The number of premiums increased due to the fact that the population has been applying increasingly to the insurance coverage companies,” Bayramov stated.
The home insurance market fell last month by 4%, although compensation payments elevated by 15%.