Up to six companies intend to get license for reinsurance activity in Azerbaijan
Baku, Azerbaijan, Jan.21
By Abbas Akhundov - Trend:
Five or six insurance companies intend to apply for a license for reinsurance activity in Azerbaijan, head of the State Insurance Supervision Service under the Ministry of Finance Namig Khalilov told Trend.
According to the amendments to the law "On insurance activity" adopted last year, insurance companies in Azerbaijan interested in reinsurance activities, will have to obtain a separate license for reinsurance from March 1, 2014. With the entry of amendments into force, the license for insurance activity allows to be engaged exclusively in insurance activities.
"Currently, the process of approving new capital requirements for insurance and reinsurance companies is underway. Once these requirements will be approved and registered at the Public Registry of the Ministry of Justice, we will give a start to this process. Basically a number of companies have already expressed interest in obtaining a license for reinsurance activity," Khalilov said.
Earlier, the ministry announced plans to increase the capital requirements for insurance companies from the current five million manat to 10 million manat in coming years. Accordingly, the capital requirement for reinsurers will be increased from the current 10 million manat to 20 million manat.
Some 28 insurance companies and one reinsurance company operate in Azerbaijan.
The official exchange rate on Jan.21 is 0.7844 AZN/USD.
Translated by L.Z.