Azerbaijan may reduce number of insurance companies

Azerbaijan, Baku, March 10 / Trend U.Ismayilova /  

The number of insurance companies may be reduced on the backdrop of expected  quantitative changes in the Azerbaijani banking market of Azerbaijan may also reduce, deputy head of the State Insurance Supervision Service under the Azerbaijani Finance Ministry Mahir Abdullayev said.

"If the banks that are stakeholder of the insurers withdrawn from the country's banking system, then the number of the insurers may be reduced," he said.

Although he believes that the current number of insurance companies (28) is not enough for the Azerbaijani economy. "Given that nearly all the movable and immovable property, and even human life is the subject of insurance, 28 companies - it's not much or even a little in case of a real demand for insurance services in the country," he said.  

Speaking about a possible merger of companies, Abdullayev said that under the insurance laws insurance companies may be merged or sold to both individuals and legal entities.

He said that in fact the number of insurance companies regulated by the market, since in the early 90-ies there were 80 insurance companies in Azerbaijan.

"I think that the number of insurance companies is not an indication, most importantly, is demand for their services," the official said.

There are 28 insurance companies, 12 of which are established by banks and one reinsurance company in Azerbaijan. There are 46 banking institutions in the country.

15-20 banks are enough for the economy of Azerbaijan, Alim Guliyev, First Deputy Chairman of the Board of the Central Bank of Azerbaijan (CBA) said earlier.

"Currently, there are 46 banks operational in the country, and we believe that this is an extreme number for such country as Azerbaijan. Therefore, one of the principal tasks of the Central Bank in 2010 will be to work out a strategy of consolidation and optimization of the banking system," Guliyev said.

There are currently a lot of banks whose main financial indicators do not form the banking system, he added.

"Therefore, we believe that the number of 15-20 is the most optimal one for Azerbaijan. In this connection, the Central Bank will be optimizing the banking system in 2010, and this process may take longer than a year," Guliyev underscored

According to Guliyev, the Central Bank will begin to pursue a strategy of consolidating banks this year. At the moment, the strategy is being concretized and specified; however, realization of the strategy will take a long period of time.

"Banks will have the following three ways: banks, which do not form the system in terms of their assets and accounts, will have either to unite through a merger of healthy assets into one large bank or be transformed into non-bank credit organizations, while weak banks will be liquidated", Guliyev said.

Do you have any feedback? Contact our journalist at: [email protected]

Subscribe to Trend in Google News! Subscribe
Iran reveals COVID-19 data for January 17
Iran reveals COVID-19 data for January 17
Iran reveals COVID-19 data for January 16
Iran reveals COVID-19 data for January 16
Iran president eases COVID curbs as deaths fall
Iran president eases COVID curbs as deaths fall
Loading Bars
Decree signed: Georgia's initiative to allow Turkey into its pharma market taking shape
Iran sending commercial delegation to Iraq
India's main cities record sharp fall in COVID-19 infections
Eurostat names Turkmenistan-Poland trade volume
Turkmenistan eyes to join Organization for Cooperation of Railways’ agreements
President Ilham Aliyev meets in video format with Speaker of Parliament of Montenegro Aleksa Bečić (PHOTO)
Why developments in Kazakhstan matter for global oil & gas market?
Uzbekistan increases frequency of trains on Tashkent-Bukhara route
Iran reveals COVID-19 data for January 17
Iran, China to sing exclusive contracts within 25 year deal
VTB Bank Azerbaijan opens tender to renew Web Application Firewall licenses
Training sessions with commanders held in Azerbaijan (PHOTO/VIDEO)
Sale of currency at weekly auctions of Central Bank of Azerbaijan has no impact on Eurobonds - Gazprombank
Kazakhstan Railways company to buy spare parts for elevator
Russia documents 30,726 daily COVID-19 cases, highest number since December 10
First regular bus trips to Azerbaijani's liberated lands may be launched soon
Population’s expenses on pharmaceutical products increase in Azerbaijan for 2021
Hydrogen to lead to emergence of new centers of geopolitical influence – IRENA
Iran to set up underwater pipeline to supply gas to Qeshm Island
Iran opens container shipping route to India
Kazakhstan Railways opens tender to buy spare parts
Azerbaijan changes amounts of official salaries of non-state employees of state structures
ISIPO discloses number of enterprises re-launched in Iran
Kazakhstan's trade with EAEU countries growing
Hydrogen to cover over 10% of global energy use by 2050
Georgia’s construction equipment vendor to represent UK company in Azerbaijan
Azerbaijan Army's engineering units manage movement on snowy roads in liberated lands (VIDEO)
Kazakhstan increases total production, import volume of cereals
Azerbaijan increases monthly salaries of senior sports scouts
TAP’s technical forward capacity by Jan.23
Physical gas flows, nominations at TAP’s interconnections
Central Bank of Iran to test using cryptocurrency for int'l trade transactions
Azerbaijan mine-clearing report for its liberated lands
Overall index of Tehran Stock Exchange drops 11,000 points
Iran keen to boost loading/unloading operations at Amirabad port
Turkish export of electrical goods to Azerbaijan rises in 2021
Executive Power of Azerbaijan’s Baku city opens tender to buy spare parts for trucks
Iran’s Bouali Sina Petrochemical Company sees surge in production
UAE's Mubadala invests $100m in Israeli VC firms
Georgia shares data on visitor inflow from Iran
Tatneft to improve well flow rate in Turkmenistan’s oil fields
SOCAR Energy Ukraine reveals plans for 2022
Number of Turkish jobseekers in Uzbekistan revealed for 2021
Turkey sees increase in number of real estate purchased by Kazakh citizens in 2021
Number of Turkish jobseekers in Kazakhstan drops in 2021
SOCAR Energy Ukraine’s fuel sales returning to pre-crisis level
Easing of budget policy in Kazakhstan may weaken national currency - forecast
Georgia publishes COVID-19 data for January 17
New urgent talks needed with Azerbaijan if IGB is delayed – Bulgargaz
Azerbaijan shares data on volume of mortgage lending
Real estate prices in Azerbaijan expected to grow - expert
Iran eyes new money transfer methods in trade with Russia
Iran launches Car Tax Collection website
Goyal assures full support to IT firms in pushing growth, exports to $1 trn
India's vaccination drive completes 1 yr, Centre launches stamp
Iran's Energy Exchange announces products to be on sale on January 17
Azerbaijani currency rates for January 17
Weekly review of Azerbaijani oil market
Azerbaijan records increase in industrial production for 2021
India Inc expects 2022 to be growth wear
India’s tourism gets a huge push at Expo 2020 Dubai
Iranian currency rates for January 17
Khizi-Absheron wind farm to allow Azerbaijan to increase export of gas - expert
Iran shares data on power generation capacity of HPPs
Kazakh Gas Processing Plant opens tender to buy pumping unit
Investments in Azerbaijan's fixed capital down in 2021
Direct flights launched between Gabala and Moscow (PHOTO/VIDEO)
Weekly review of Azerbaijani currency market
Georgia shares data on tea imports, exports
Iran records decrease in dam water reserves
Iran unveils volume of olives harvested in country
IRICA shares data on Iran’s trade turnover with Azerbaijan
Australia recognizes Russia’s Sputnik V vaccine against COVID-19
Uzbekistan shares domestic COVID-19 data for January 16
Iran sees increase in transit of goods by trucks
Iran shares data on export-import process, movement of trucks via Astara border checkpoint
Azerbaijan sees increase in employment figures
Buy/sell operations at Iran Mercantile Exchange down
One year of vaccination drive: Near 158-cr jabs administered in India
India's 1st S-400 unit to be ready by April, 4 others by 2023
Israel increases state aid plan for COVID-hit airlines
Weekly review of Azerbaijani precious metals market
Weekly review of key events in Azerbaijan's ICT sector
Iran to save money following construction of new pipeline – NIORDC
Oil extends rally on supply tightness, Brent at more than 3-year high
Number of passenger planes flying over Iranian airspace increase
China launches new satellite
Azerbaijani MoD confirms death of active duty military serviceman
Israel registers 27,167 new COVID-19 cases, 1,785,551 in total
India's gold imports jump over two-fold to $38 bn in Apr-Dec 2021
Number of participants of illegal actions detained in Almaty increased to 2,6 thousand people
Turkey registers 54,100 daily COVID-19 cases
Eight of 10 most valued firms add Rs 2.34 trn in m-cap
N.Korea fires two ballistic missile from Pyongyang airport, S.Korea says
PM Narendra Modi calls for innovating for India, from India
Vessel traffic in Bosphorus restored
UK's Johnson plans to scrap COVID-19 self-isolation law
Jaishankar, Rajapaksa discuss energy projects, credit lines
Tsunami advisory canceled for Bay Area in U.S. California
Volkswagen to step up EV production in China
All news