BAKU, Azerbaijan, May 20
By Yusif Aghayev – Trend:
By the decision of the Central Bank of Azerbaijan’s (CBA) board dated May 19, 2020, in accordance with 4, 109.1.2, 118.1.1 and 118.1.2 articles of the law on insurance activities of Azerbaijan, the license on activities of Standard Insurance OJSC was canceled, Trend reports citing published information of the CBA.
According to the information, a temporary administrator was appointed to the company, and a statement on initiating company’s bankruptcy proceedings was sent to the court.
In conformity with the law, the powers of the management bodies of Standard Insurance were terminated and transferred to the interim administrator appointed by CBA.
“Based on the monitoring carried out by CBA, the regulator of the country's insurance market, it was revealed that the total capital of the insurance company is much lower than the required level, and relevant discussions were held with the company's management on this issue. However, the shareholders did not provide a specific plan for the full recovery of Standard Insurance’s capital. The company’s performance criteria were rated as extremely low. The company completed the last two years at a loss,” the information said.
The issue of behavior in the country's insurance market, especially in the field of consumer protection has been repeatedly raised in front of the company’s management. The chronic liquidity problem of the company caused serious delays in the settlement of insurance claims, which led to an increase in consumer dissatisfaction with insurance services.
Given all of the above, the CBA’s board adopted the decision on termination of the company and revocation of its license.
Presently, 21 insurance companies and one reinsurance company operate in Azerbaijan.