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New Law on Insurance in Azerbaijan to Liberalize Sums of Re-insurance Accords

Business Materials 13 June 2007 19:02 (UTC +04:00)

Azerbaijan, Baku / Trend corr U. Ismayilova / The new Law on Insurance to be adopted in the near future will promote the development of both insurance and re-insurance fields, the Deputy Director General of the Azerbaijani Gunay Anadolu Sigorta insurance company, Mehman Aliyev, said on 13 June.

According to Aliyev, the new law includes a unit on re-insurance indicating that the sum of the re-insurance accord will not be restricted.

Aliyev also noted that for the time being, the most large-scale agreements in Azerbaijan were concluded mostly in the oil sector. Due to a shortage in funds, the agreements are concluded not through direct insurance of the risks, but through re-insurance in large foreign companies.

As to the flow of foreign investments to the Azerbaijani insurance market, Aliyev said that the proposed 49% is not of any interest for large companies.

"Large-scale foreign investments to the Azerbaijani market can be expected after the adoption of the new law enabling investors to own the control of stock packages," he said.

Gunay Anadolu Sigorta founded by Gunay joint-stock bank and Turkish Anadolu Anonim insurance company has been operating since 1992.

The company cooperates with such re-insurance companies as Munich Reinsurance Company ( Germany), Swiss Reinsurance Company ( Switzerland), Cologne Reinsurance Co. Ltd ( Germany), Assicurazioni Generali S.P.A. ( Italy), Royal England), American Re- Insurance Company (USA), and SCOR Reinsurance (France).

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