Market participant: 'Cleaning' in Azerbaijani insurance market will contribute to its development

Business Materials 2 June 2010 17:19 (UTC +04:00)

Azerbaijan, Baku, June 2 / Trend U.Ismayilova /

"Cleaning" of the companies mismatching certain requirements in the Azerbaijani insurance market, is a positive factor for the overall development of the market, Alfa Sigorta Company Board of Directors head Khayal Mammadkhanli said.

"These companies may negatively affect the image of those companies that are active in the market," Mammadkhanli said.

He said on the other hand the consolidation of these companies to maintain even a small portfolio and client base would be an optimal solution.

"Despite this, the removal of non-professionals from the market may only positively influence the events," Mammadkhanli said.

The Finance Ministry of Azerbaijan made an order May 7 suspending the license for insurance activities of the three companies - Günay Sıgorta, Azal Sıgorta and Emrah Sıgorta. The decision was made in connection with the failure to fulfill the requirements of state insurance supervisory for the implementation of certain standards stipulated in the insurance legislation and financial stability of insurers. Six months were provided for the companies to correct the break.

Earlier, in late April, was refused to issue permanent license for insurance activities, so, AzInvest Sigorta JSC suspended its activities on the insurance market of the country.

Then, the Azerbaijani Finance Ministry restored a license for insurance activities to OJSC "Amrah Sigorta", in connection with the liquidation of previously identified violations in the company, which have been associated with the incompatibility of the company's capital with regulatory requirement. The license to Amrah Sigorta was restored May 25, 2010.

In accordance with the Law on Insurance Activity, as of Jan.1, 2010 the insurance companies had to bring the total capital to at least two million manat.

Alfa Sigorta was registered in August 1997 under the name "Murad." In June 2005, the company changed its name to Alpha Insurance. In December 2006, the company moved to full ownership under Texnika Bank. The company provides services on 25 types of insurance services. Authorized capital is 3.1 million manat. The company's premiums on the basis of activity in January-April totaled 0.37 million manat, with payments worth 0.07 million manat.

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