Azerbaijan studies European solvency requirements for insurance companies
Azerbaijan, Baku, Nov. 29 / Trend A. Akhundov /
Azerbaijani insurance companies are learning about the international standards of Solvency II.
A workshop on 'Solvency II: Risk based solvency requirements' is being held in Baku today. It has been organised in cooperation with European Commission and the State Insurance Supervision Service of the Azerbaijani Finance Ministry.
Head of the State Service Namiq Khalilov said at the workshop that Azerbaijani insurers must now study the conditions of the Solvency II directive to rise up to these standards in the future. "In the future we will start working to pass on these requirements," Khalilov said.
The workshop is being conducted by foreign experts and will close on November 30.
The new rules will come into effect from January 2014 and will operate in 30 European countries. Solvency II is based on three pillars: quantitative requirements (such as capital requirements), quality requirements for risk management and regulation by the regulatory bodies, as well as requirements for reporting and disclosing the requirements.
The EU created a modern, risk sensitive basis for regulating insurance as a third Solvency II directive. It is planned that the new structure will have a significant impact and change insurance conditions in Europe. The European insurance market and in particular the European Committee of Insurers and the Forum of Executive Risk Managers support the new conditions that will be fully implemented by the end of the year.