BAKU, Azerbaijan, February 13. Criterion for classifying systemically important insurance businesses have been accepted in Azerbaijan, Trend reports.
Governor of the Central Bank of Azerbaijan (CBA) Taleh Kazimov signed a decision to approve the “Criterion for evaluating an insurer as a systemically important insurer.”
According to the decision, insurance companies meeting the following criteria will be considered systemically significant insurance companies: those with 20 percent of the total asset weight, 10 percent of insurance premiums, 10 percent of insurance contracts, insurance company obligations to financial organizations, assets placed in financial organizations, and reinsurance shares at 6.67 percent, as well as insurance (reinsurance) shares for special types of insurance at 30 percent, and diversity of the insurance (reinsurance) portfolio at 10 percent.
An insurer's systemic relevance is measured using annual reports from the previous three years (one for each year).
If the insurer has been in business for less than three years, the annual reports for the years it was active are utilized as a foundation.
The CBA Board will adopt the list of systemically significant insurers on an annual basis by March 1.
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