Azerbaijan, Baku, August 12 /Trend, A.Akhundov/
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Azerbaijan's Ministry of Finance plans to approve the new schedule for increasing capital for insurance and reinsurance companies in early autumn, the Head of State Insurance Supervision Service under the Ministry Namik Khalilov told Trend on Monday.
"The decision on new requirements will be adopted in early autumn," Khalilov said.
Earlier, the Ministry announced plans for increasing the requirements for the capital of insurance companies from current 5 million to 10 million manat. Accordingly, the requirement for the capital of reinsurance companies will be increased from current 10 million to 20 million manat.
The major part of the market members believe that if necessary, the shareholders of the companies can attract resources to increase capital to the required level. However, a number of companies with relatively weak capital base and limited financial resources believe that the further capitalization of the market is a normal process, but given the interests of all players, the regulator should increase the requirements in stages.
The capitalization of the country's insurance market has increased by 16 times and the income of insurance companies - by 17.5 times in ten years. The minimum requirement for the capital of insurers increased from 1 million to 5 million manat in 2002-2013. As of last year, the aggregate capital of the participants of insurance market amounted to 343.44 million manat, paid-up authorized capital amounted to 294.06 million manat and other capital reserves - to 49.39 million manat.
Around 28 insurance and one reinsurance company operate in Azerbaijan.
The official exchange rate on August 12 is 0.7844 AZN/USD.