Azerbaijan aims to protect insurance market during global financial crisis

Business Materials 4 February 2009 16:33 (UTC +04:00)

Azerbaijan, Baku, Feb. 4 / Trend , U.Ismayilova /

The Azerbaijani Finance Ministry's State Insurance Supervision Service analyzed the market and may reassess reserve-fund norms at insurance companies, head of the State Insurance Supervision Service Namik Khalilov said.

"Some reserve funds may be reduced to increase capitalization and reserve-fund turnover on the background of the global financial crisis," Khalilov added.

Exempting insurance companies from income tax over a three-year period is an anti-crisis  governmental measure to increase capitalization.

Unnecessary expenditures must be lowered to minimize the influence of the crisis on insurance companies, Khalilov said.

"The insurance market grew 22 percent in 2008. This is a low figure. It is hard to make a projection for 2009," Khalilov said.

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