New player appears in Azerbaijani insurance market

Business Materials 5 January 2012 14:27 (UTC +04:00)

Azerbaijan, Baku, Jan. 5 / Trend A. Akhundov /

A new player in the Azerbaijani insurance market, the Royal Sıgorta Company plans to become a member of the bureau on compulsory insurance which was established to oversee the requirements of the new law on obligatory types of insurance, chairman of the company's board Nusrat Babayev told Trend today.

The law regulates four types of compulsory insurance - real estate, liability of owners of vehicles, passenger insurance and real estate liability. Insurance companies have been using the law since December 16, 2011.

"We plan to engage in all kinds of activities, except compulsory insurance of passengers," he said. "We appealed to the Finance Ministry on December 29 to get initial permission and it must consider our proposal within a month."

Six companies are founder members, Pasa Sıgorta, Atesgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta and Standard Insurance. Insurance firms Atesgah Sıgorta, Xalq Sıgorta and Standard Insurance, as well as two representatives of the Ministry of Finance, Head of Tax Policy and the head of the legal department are elected as a board of trustees.
The following fees to practice insurance are 200,000 manat for obligatory insurance liability of vehicle owners, 200,000 manat for insurance of passengers, 100,000 manat for property insurance and 100,000 manat for real estate liability insurance.

Besides the contributions for being part of the association, permits and fees to the sum of five per cent paid on each transaction, there will be additional benefits.

The number of participants in the compulsory insurance office established in Azerbaijan may increase to 15, State Service for Insurance Supervision official Namig Khalilov said earlier.

"About 10-15 companies have the capability to meet the requirements for entry and the list can further expand with increasing ability of firms in the future" Mr Khalilov said earlier. He noted that the number of firms in the bureau could increase to 10 in early 2012.

There are 29 insurance and one reinsurance companies in Azerbaijan. At the same time the licence of Fidan Sıgorta Gunay Sıgorta Company was suspended.

The State Insurance Supervision Service under the Finance Ministry gave a five-year licence for insurance trading to the Royal Sıgorta company on December 28, 2011.

In December, the company formed a management team. The Azerbaijani Finance Ministry announced the list of candidates for leading positions in the insurance companies which have passed the appropriate test examination. Royal Sıgorta Company's board chairman Nusrat Babayev, board member Elmar Hajiyev, chairman of the audit commission Rashid Huseynov, member of the audit commission Rasim Gambarov and actuary Mirvari Hasratova are among them.

The company was registered on October 11, 2011. Its legal representative is Nusrat Babayev. The supervisory board was formed of three members, Shahbaz Shahbazov, Famil Teymurov and Farman Huseynli.

The official exchange rate is 0,7865 AZN/USD on Jan. 5.