The Central Bank of Azerbaijan (CBA) has implemented significant amendments to the "Rules on Compulsory Insurance of Civil Liability of Motor Vehicle Owners," introducing a more nuanced approach to premium calculations. According to the Operative Information Center-OMM, citing the CBA, these changes are part of a broader strategy to ensure the sustainable development of the insurance market and strengthen public trust in financial services.
Under the new regulations, insurance premiums for mandatory motor vehicle liability will be determined based on specific risk factors that account for the likelihood of damage to third-party property and health. A key focus of the reform is the introduction of specialized coefficients for vehicles used in passenger transportation, particularly taxis. Analysis conducted by the CBA revealed that taxis, due to their intensive use and high frequency in traffic, pose a significantly higher risk of accidents compared to vehicles used for personal purposes. Consequently, the new rules apply distinct risk coefficients to taxi services to ensure that premiums are more adequate to the actual risks involved.
The Central Bank emphasized that these adjustments align with successful international practices and aim to improve driving discipline across the country. By aligning insurance costs with risk profiles, the CBA seeks to provide better protection for third parties and maintain social welfare stability. In Azerbaijan, the mandatory insurance sector has seen steady growth, and these technical refinements are expected to further professionalize the industry while ensuring that insurance companies remain solvent and capable of meeting their obligations to policyholders.
