Serious increase in insurers capitalization requirements not expected in Azerbaijan

Business Materials 4 September 2012 18:26 (UTC +04:00)

Azerbaijan, Baku, Sept 4 /Trend A.Akhundov/

A serious increase in the requirements for minimum capital of insurance companies isn't expected in Azerbaijan, the State Insurance Supervision Service under the Ministry of Finance told Trend on Tuesday.

Under the current law the capital of insurance companies in Azerbaijan should not be less than five million manat, reinsurance - ten million manat since January 1, 2013.

From January 2011, the minimum capital of insurance companies was set at 3 million manat.

There are 28 insurance companies and one reinsurance company operating in the country.

"The requirements are defined in accordance with the situation in the market and at a level that the market players can meet," the State Insurance Supervision Service said.

The decision on raising minimum capital requirements of the insurance market participants in the next three years can be taken in the current year or in 2013.

Unlike the banking sector, there is no question of significant increase in requirements for capitalization of insurance companies.

The minimum total capital of existing banks, as well as the authorized capital of newly established banks increased to 50 million manat by the decision of the Central Bank of Azerbaijan (CBA) adopted on July 25, 2012.