Green light to foreign investors in the local insurance market

BAKU/17.12.13/TURAN : The main item in force changes and amendments to the Law of Azerbaijan " On insurance activity" was an opportunity for any foreigner to invest in the local market .

According to a presidential decree published on the eve of the official media , now shareholders of local insurance companies (of 28 + 1 reinsurance structure) can be not only professional participants of foreign insurance , but foreign physical and legal persons engaged in , whatever was the kind of entrepreneurship .

Thus, under Article 20.1-1 Law , the share of foreign capital in the individual insurance company in Azerbaijan can not exceed 10 %. In this case , the maximum share of foreign individuals in the capital of the insurance company can not exceed 30 %.

In addition , the share of a foreign legal entity (other than a professional insurer or foreign institutional investors ) in the capital of an insurance company in Azerbaijan should be below 50 %.

Amendments to the Act also clarifies the definition of mortgage insurance , provide for the possibility of concluding insurance contracts in electronic form , formation of insurance reserves. - 17D-