Azerbaijan, Baku / Trend corr U. Ismayilova / It is not profitable now for foreign companies to invest in the development of the insurance market in Azerbaijan, the head of the State Insurance Control Department at the Azerbaijani Finance Ministry, Namig Khalilov, said on 12 June.
The unit providing for the possible participation of foreign insurance capital with the ratio of 49% to 51%, which was the main factor impeding flow of foreign insurance investments to Azerbaijan, was removed from the Law on Insurance. However, it is still in effect. In Khalilov's opinion, a large investment company is not interested in receiving 49%.
"I believe large investments should not be expected to enter the Azerbaijani insurance market in the near future," he said.
Khalilov noted that foreign companies hold an overall audit of a company before investing.
Azerbaijani insurance companies are carrying out gradual reforms in that field. The final result of the reforms will appear after the adoption of the new Law on Insurance. There are twenty-nine insurance companies operating in Azerbaijan.