Market participant: Capitalization of insurance companies is guarantee to fulfill obligations in Azerbaijan
Azerbaijan, Baku, May 13 / Trend U. Ismayilova /
Suspension of the licenses of three insurance companies by the Azerbaijani Ministry of Finance is a positive factor to guarantee the timely payment by insurers. These companies have not fulfilled the minimum requirement to aggregate capital, chairman of the Azerbaijani Association of Insurers, Atesgah Sigorta, Azer Aliyev said.
"Each insurance company operating on the market must adhere to the requirements of the state insurance control", Aliyev said.
He said that increase of the capitalization of insurance companies is a guarantee of the obligations necessary for customers to be more confident in timely getting insurance payments.
The Azerbaijani Finance Ministry suspended the licenses for insurance activity of three companies - Gunay Sıgorta, Azal Sıgorta and Emrah Sıgorta May 7. This decision was made in connection with the failure of the requirements of state insurance supervisory authority for the execution of certain insurance law standards of solvency and financial stability of insurers.
Earlier, in late April, JSC "AzInvest Sigorta" failed to get a perpetual license for insurance activity. It ceased its activity on the insurance market of the country.
In accordance with the law "Insurance activity", insurance companies were supposed to bring the total capital to at least two million manat as of Jan. 1, 2010.
As a result of suspension of licenses of the three above-mentioned insurance companies and the denial of new licenses, about 24 companies operate on the market.