Azerbaijan, Baku, Feb. 27 / Trend A.Akhundov /
The Bureau on compulsory insurance established in Azerbaijan in Dec, 2011 in accordance with requirements of the new law "On compulsory types of insurance" has announced list of banks on deposit account of which it placed its funds.
These include Pasha Bank, Xalq Bank, Bank of Baku, DemirBank, Access Bank, Bank Standard, Unibank, AG Bank, the Bureau told Trend on Monday.
"Four million manat, accumulated in the Bureau, have been placed in deposit accounts of local banks. We studied the proposals of banks, and the Bureau's board of trustees chose the eight banks, in which these funds were then placed. Selection took place on different criteria - bank stability, rate, market share, as well as on the proposals (interest rates, etc.)," the Bureau said.
With the growing investment portfolio of the Bureau funds will be placed in new instruments, and it is theoretically possible to place funds in foreign markets, the Bureau said.
"The domestic market is currently more attractive in terms of investment policy. While it allows to master these funds, they will be placed on the domestic market. It is also possible to invest these funds in other instruments in the domestic market - these are short-term government bonds and so on. Currently these options are not considered, since the deposit portfolio has not grown to the size when it will be necessary to use these tools," the bureau noted.
Until a portfolio reaches 10 million manat, other tools will not be considered.
"It will certainly be possible next year," the bureau said.
The law regulates four types of compulsory insurance - real estate, liability of owners of vehicles, passenger insurance and liability insurance while touching on real estate. Insurance companies started using the law since December 16, 2011.
The Bureua's members are nine companies: State Insurance Commercial Company of Azerbaijan, Pasha Sıgorta, Ateshgah Sıgorta, Ata Sıgorta, AXA MBASK, Xalq Sıgorta, Standard Insurance, AzSıgorta and Alfa Sıgorta
There are 29 insurance and one reinsurance companies in Azerbaijan. At the same time the insurance license of the Fidan Sıgorta Company was suspended.
The official exchange rate is 0.7863 AZN to $1 on Feb. 27.