Not capitalized insurance companies in Azerbaijan will not be violated

BAKU/14.02.14/TURAN : The level of capitalization of insurance companies Azerbaijan is officially at 270 million manat as of January 1, 2014 . According to the Head of Civil Service of Insurance Supervision at the Ministry of Finance Namik Khalilov , it is almost 17% higher than a year earlier.

By 2013, the figure was 230.7 million , which means strengthening the confrontation to financial risks by about 40 million manat . This process will be objectively strengthened in view of the updated requirements for minimum capital requirements for insurance and reinsurance companies operating in Azerbaijan, he said.

According to him, the innovations were also impacted by the recent changes in the law " On insurance activity " , resulting in the decision to split the licensing of insurance and reinsurance business for the companies for which the insurance is the main activity .

To ensure that these companies can handle simultaneously and reinsurance activities , introduced a separate licensing. In this regard, to obtain a license for reinsurance activity , one of the conditions for insurance companies is the availability of additional capital in excess of capital required for insurance activities. This additional capital is now to be at 2.5 million manat , on January 1, 2015 - 5 million manat.

Today in Azerbaijan there are 28 insurance companies. Some of them have some problems with the capital. State Insurance Supervision Service does not consider the presence of these financial institutions impediment to the development of the local insurance market. - 17D