Azerbaijan, Baku, Nov. 28 / Trend A.Akhundov /
Parties interested in the work of Islamic insurance in Azerbaijan, have to initiate changes to the existing legislation. This was told reporters on Wednesday by the head of Azerbaijani State
Insurance Supervision Service under the Ministry of Finance Namig Khalilov.
"Relevant legal framework is required for operation of Islamic insurance. Under current conditions companies can not comply with the capital requirements as well as the rules of Islamic insurance," Khalilov said.
In addition, Islamic insurance requires sources of Islamic financing.
"Companies may face difficulties within capital formation" Khalilov said.
Islamic Corporation for the Development of the Private Sector (ICD, a member of the IDB group) is ready to assist Azerbaijan in creation of the first Islamic insurance company - Azerbaijan Takaful Company. This idea is planned to be implemented in partnership with the Azerbaijani AmrahBank.
According to the ICD, the company will be set up with an initial registered capital of five million manats (about $6.4 million).
"The situation in the Azerbaijani insurance market, in particular legislation governing the insurance sector, is being researched, in order to identify opportunities for insurance activity according to Islamic principles," IDB representative in Azerbaijan Tamerlan Tagiyev previously told Trend.