BAKU, Azerbaijan, January 31. It is not excluded that small insurance companies in Azerbaijan will unite or voluntarily leave the market, Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said during the press conference on changes in the parameters of the refinancing rate, Trend reports.
According to him, the situation in the insurance market in Azerbaijan is generally stable.
"From next month, the Central Bank of Azerbaijan will impose corporate governance requirements on insurance and investment companies. One of those requirements is to have a development strategy for at least three years. In general, the financial sector is quite stable. Only the merger of small organizations or voluntary liquidation is possible here. When merging, the CBA also asks for a strategy. Presently, banks are not facing the question of a possible merger; this is more relevant to insurance companies. Some of them may be discussing voluntary mergers or liquidations. From the point of view of sustainability, we do not see any problem organizations in either the banking or insurance sectors," he added.
To note, 18 insurance companies are licensed to operate in Azerbaijan as of the end of 2023. The share of five large insurance companies in total premiums in 2023 amounted to 80.9 percent and 83.5 percent in payments.
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