Entry of Foreign Companies to Azerbaijani Market Will Not Affect Domestic Insurance Companies: Expert

Business Materials 1 April 2008 13:02 (UTC +04:00)

Azerbaijan, Baku, 1 April / corr. Trend U. Ismayilova/ The entry of companies with 100% foreign capital to Azerbaijani market will not lead to the marked changes in the business of domestic insurance companies, Jamil Malikov, the Head of MBASK insurance company said.

"Foreign companies with strong financial resources will offer their services mainly to large cooperative clients," Malikov said.

The new Law on Insurance in Azerbaijan took effect on 15 March which defines basic principles of development of the insurance system, specialized participants of market, insurers and re-insurers, as well as the rights of state insurance regulator and supervisor.

According to Malikov, the presence of large foreign companies in the domestic market will provide favourable conditions for the exchange of information in re-insuring of large risks. "Big changes are not expected to occur after the entry of foreign capital into the market," Nalikov said.

MBASK Insurance Company has been operating in the Azerbaijan insurance market since 1992. The company offers 29 types of insurance services, four of which are mandatory. The authorized capital stock of the company totals to AZN2mln. The EBRD has held 3% shares of the Company since 2005.

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