Azerbaijan, Baku, Dec. 9 / Trend U. Ismayilova /
The Azerbaijan Finance Ministry amended the minimum capitalization requirements for insurance and reinsurance companies during a board meeting on Nov. 29, the Azerbaijani State Insurance Supervision Service told Trend.
The below table includes the new minimum requirements on capitalization:
|
Terms of ensuring minimum capital requirement |
Minimal level of insurance company capital |
Minimal level of re-insurance company capital |
|
Jan.1, 2011 |
3 million manat |
6 million manat |
|
Jan.1, 2012 |
4 million manat |
8 million manat |
|
Jan.1, 2013 |
5 million manat |
10 million manat |
While making the decision on the minimum capital requirement, the impact of the global financial crisis on insurance and reinsurance companies was taken into account. Its influence on the dynamics of the country's insurance market was also analyzed.
According to a previous decision issued by the ministry's board on July 31, 2008, the minimum capital requirement for insurers as of Jan. 1, 2011 was fixed at 3.5 million manat (7 million manat for reinsurance companies), and as of Jan. 1, 2012 - 5-million manat ( 10 million manat).
There are 27 insurance and 1 reinsurance companies in Azerbaijan.