Azerbaijani insurers must justify their premiums

Photo: Azerbaijani insurers must justify their premiums  / Finance

Baku, Azerbaijan, June 19

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Improving the quality of insurance services in Azerbaijan is one of the most relevant issues today, Azerbaijani Finance Minister Samir Sharifov told the media on June 19.

"It is important to work on improving the quality of services rendered by insurers to their clients," he said. "The companies must justify their premiums."

"As for the market, it is being dynamically developed," Sharifov said.

"This development has all the features typical for the market economy," the minister added.

The total amount of the insurance companies' fees hit 186.9 million manats in January-May this year, which is 10.8 percent (18.2 million manats) more than in the same period of last year. The amount of the insurance companies' payments for the first five months of 2014 amounted to 55.2 million manats, which is 13 percent (6.3 million manats) more than in January-May 2013.

It should be stressed that the licenses of Royal Sıgorta and Gunay Sıgorta [its license was restored on May 29] were temporarily suspended upon the finance ministry's decision as of Feb. 24. The shortages in the activity that caused the suspension of a license must be removed within six months in accordance with the requirements of the insurance legislation. The companies' licenses can be restored in case of bringing the aggregate capital in compliance with the minimum requirements of the finance ministry. A minimum amount of the aggregate capital of insurers operating in non-life, set at five million manats.

The official exchange rate is 0.7843 AZN/USD on June 19.

edited by CN

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