EU standards in insurance field to be introduced in Azerbaijan in medium term context
Azerbaijan, Baku, Jan. 31 / Trend, A. Akhundov /
The introduction of international standards of solvency "Solvency II" in the Azerbaijani insurance market is a medium-term goal, head of State Insurance Supervision Service under Finance Ministry Namik Khalilov told Trend.
"The introduction of these standards requires a certain number of professional actuaries, as all these models are made by actuaries. Today we do not have sufficient number of actuaries. This week, in conjunction with the Azerbaijan Association of Insurance Companies, we opened actuarial courses. We are attracting young people. About 40 people are involved in the courses, they are mainly students, "Khalilov said.
He said companies must also have relevant potential for the supervision of the introduction of these standards.
"We're building up this potential. We also plan to continue cooperation with the European Union in the framework of various programs, and further request seminars on a narrower range of subjects from our experts so they can familiarize themselves with the nuances of the new system. Some elements of Solvency II can already be introduced. After the EU introduces these standards in 2014, and the system starts functioning, we can set up a goal of introducing these standards. In the future, we may ask for technical assistance and the launch of twinning programs, so that the EU can help us in the practical implementation of this system. Issues surrounding the full implementation of Solvency II in Azerbaijan will not be solved in a matter of few years. This is a medium-term goal, as this process is very complex, "Khalilov said.
The new rules will come into effect on January 2014 and will stand in 30 European countries. Solvency II is based on three pillars: quantitative requirements (such as capital requirements), quality requirements for risk management and regulation system by regulatory authorities, as well as reporting and disclosure requirements.
By the third Solvency II Directive, the EU created a modern, risk-sensitive basis for regulating insurance. It is believed that the new structure will have sufficient influence and significantly change the conditions of insurance in Europe.