BAKU, Azerbaijan, May 31
By Yusif Aghayev – Trend:
The temporary manager for Azerbaijan’s Standard Insurance OJSC, whose license was recently revoked by the decision of the Central Bank of Azerbaijan (CBA), has been named, former chairman of the company Kamran Babayev told Trend.
Oruj Hasankhanov, an employee of CBA, has been appointed the temporary manager for the insurance company. Until recently he worked in the insurance department of the Financial Market Supervision Chamber.
The Financial Market Supervision Chamber of Azerbaijan was abolished on November 28, 2019, in accordance with the decree of the head of state on improving management of the regulatory system and control of the financial services market.
According to the decree, the authorities of the chamber, defined by the laws of Azerbaijan, including its rights and obligations in the field of licensing, regulation and supervision of the financial services market, protection of the rights of investors and consumers of financial services, as well as its property, were devolved to CBA.
Standard Insurance OJSC was established in 2002 as a full-fledged insurance company operating in the non-life insurance segment; it belongs to the AB Standard group of companies. Its authorized capital is 12.6 million manat ($7.4 million). The company was licensed to carry out four mandatory and 24 voluntary types of insurance. Based on the results of activities in 2019, the company collected insurance premiums in the amount of 14 million manat ($8.2 million) and paid insurance indemnities in the amount of 5.4 million manat ($3.1 million), ranking 14th in the ranking of domestic insurers.
In accordance with Art. 4, 109.1.2, 118.1.1 and 118.1.2 of the Law on Insurance Activity of the Republic of Azerbaijan upon the decision of the Board of the Central Bank of the Republic of Azerbaijan dated May 19, 2020, the license for carrying out Standard Insurance company’s activity was canceled, a temporary manager was appointed in the company and a statement was sent to the court to initiate the company’s bankruptcy proceedings.
Since the Standard Insurance OJSC has insurance obligations under existing insurance contracts until approximately May 2021, the temporary manager (and the liquidation commission afterwards) must take measures to ensure the payment of insurance indemnities in accordance with outstanding claims and with insurable events that may occur in period while all valid insurance contracts will remain in force.
Presently, 21 insurance companies and one reinsurance company operate in Azerbaijan.