Azerbaijan's Central Bank unveils plan on improving country's insurance sector
BAKU, Azerbijan, May 31
By Yusif Aghayev – Trend:
The Central Bank of Azerbaijan (CBA) has prepared a plan for the development of Azerbaijan’s insurance sector, Head of Insurance Supervision Department of CBA Vusal Gurbanov told Azerbaijan Television and Radio Broadcasting (AzTV) CJSC, Trend reports.
Gurbanov noted that during the implementation of this plan, a number of projects are designed that are aimed at improving the situation in the country's insurance market, overcoming occurred problems and further developing the entire insurance system in Azerbaijan, bringing it into full compliance with international standards in this area of economic activity.
“The main objectives of CBA within the framework of this action plan are to increase the level of satisfaction of users of insurance services and create affordable and effective new insurance products for them. To achieve this, it is envisaged to make certain changes in insurance legislation for bringing it into line with the changing market realities. On the other hand, it is planned to improve the norms and methods of insurance supervision itself in order to make them more effective in the conditions of dynamically developing insurance market of the country,” said Gurbanov.
“Moreover, a plan to digitalize the sector is being actively implemented, and a lot has already been done in this direction; two mandatory types of insurance have been fully digitalized. But much remains to be done, and in this context we are talking not only about the digitalization of the process of drawing up insurance contracts, but also of the settlement of insurance claims,” he said.
Implementation of large-scale information and awareness-raising events related to the popularization of insurance among the general population is envisaged, Gurbanov added.
The Financial Market Supervision Chamber of Azerbaijan was abolished on November 28, 2019, in accordance with the decree of Azerbaijani President Ilham Aliyev 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.
Presently, 21 insurance companies and one reinsurance company operate in Azerbaijan.