Insurers Offer Regulator of Financial Markets Not to Close Its Eyes to Monopolization of Services in This Segment

The majority of insurance companies of Azerbaijan is dissatisfied with the monopolization in this segment and require the Financial Market Control House (FMCH) to provide equal approach to all the parties, which was bnot done by its predecessor - the State Insurance Supervision Service under the Ministry of Finance.

This requirement was announced at the recent meeting of the insurers with the President of the FMCH Board of Directors Rufat Aslanli, with reference to the active opposition of the head of state to monopolies in the current economic climate.

The State Service under the Ministry of Finance has always focused on growth performance indexes, while it should have taken into account the real situation in the financial market and implement prudential supervision, which means no regular audits of insurers, and should be carried out through regular reporting.

In addition, at the meeting they raised the question of the creation of a state reinsurance company (at least on the basis of the Azersigorta state commercial insurance company) with capital sufficient to keep a substantial part of the local risks in the country. It would serve as a benefit not only to the insurance market, but also a positive impact on the stability of the AZN exchange rate, reducing the need for foreign currency in reinsurance transactions abroad. --17D-