Azerbaijan, Baku / Trend , corr. U. Ismayilova / Namig Khalilov, the Chief of the State Insurance Supervision Department of the Azerbaijan Finance Ministry, has said that the existing situation with the insurance market in the country does not meet with the social and economic development of the country, Trend reports.
According to Mr. Khalilov, the Finance Ministry of the Country jointly with Lawrie Savage Canada are elaborating a new draft - "On Insurance", which has already been submitted to the legal expertise for further consideration.
"After the bill is passed, the Azerbaijan insurance market soon is expected to be improved" he said.
The first step to a more developed insurance market will become the reconsideration of the authorized capital of insurance companies operating in the country by January 1, 2010. Their authorized capital will be to be at least $3 mln., that give an impetus to the development and expansion of the professional market of insurance.
By the order of the Azerbaijan Cabinet Minister, made on April 9, 2004, the authorized capital of the insurance companies is to increase as follows: AZN 500.000 by January 1, 2005, AZN 6000.000 - by January 1, 2006, and AZN 700.000 - by January 1, 2007.
"Weaker companies need not be closed. They may unite with or join other insurance companies, and establish the one company to meet with the requirements of the market, or attract additional foreign capital to sustain," concluded he.