BAKU, Azerbaijan, May 23
By Yusif Aghayev –Trend:
The Central Bank of Azerbaijan (CBA), the regulator of the country's insurance market, should conduct a dialogue with all participants of the insurance market, insurance expert Khayal Mammadkhanli told Trend.
“All professional participants of the insurance market should be involved in this dialogue, that is, not only insurance companies, but also intermediaries - agent and brokerage organizations, as well as other persons carrying out auxiliary activities in the insurance market, consulting and legal companies, mediation bodies and independent insurance experts,” said the expert.
“Due to the inaction of the abolished Chamber for Supervision of Financial Markets at the end of 2019, serious institutional problems have accumulated in the insurance sector. The closure of some banks in the country, which were the parent company for certain insurance companies, created problems for them with capital and liquidity of assets,” said Mammadkhanli.
“The CBA, as a regulator of the insurance market, has promptly launched a sufficiently radical plan to improve the market. In the framework of this activity, the CBA must take advantage of all the extensive tools provided to it under the insurance legislation, limit its activity, monitor and warn of violations and non-compliance with the requirements established by law,” he added.
“The main current task in the insurance market is to maintain and increase the confidence of the population and the business community in insurance, to strengthen activities for increasing public awareness and education in the field of insurance. Only in this way it is possible to improve the insurance market and provide the necessary balance for the normal operation of all its professional participants,” the insurance expert noted.
By the decision of the Board of Directors of the Central Bank of Azerbaijan dated May 19, 2020, according to Art. 4, 109.1.2, 118.1.1 and 118.1.2 of the Law on Insurance Activities of Azerbaijan, the license for insurance activities of Standard Insurance was canceled, a temporary administrator was appointed to the company, and a statement was sent to the court to initiate bankruptcy proceedings.
Currently, 21 insurance companies and one reinsurance company operate in Azerbaijan.