Azerbaijan, Baku / corr. Trend U.Ismailova / Aftandil Hajyev , the deputy manager of the Azerbaijani Azersigorta insurance company, stated on the 19th of June that the introduction of foreign investments on the base of 100% acquisition of stocks into the Azerbaijani market, might have a negative effect on the local markets.
Hajyev noted that if any foreign investor from an international level enters the Azerbaijani insurance market and announces its authorized capital, which is higher in comparison to local companies, on insurance products and services for clients, which are absent in Azerbaijan presently, then potential clients will prefer to appeal to this company.
"All these processes will negatively affect the internal development of the insurance market of the country" Hajyev said.
Namik Khalilov , the manager of the State Insurance Supervision Department of the Azerbaijani Finance Minister, stated that after accepting the new Law on 'Insurance' the barriers for investors will be liquidated, hence they will own the purchased company.
In compliance with the current law, foreign investors of insurance companies might only obtain 49%.
The Azerbaijani State Azersigorta Company is the owner of 51% of stocks of the joint Insurance Azer -Asia Company and the Iranian Insurance Asiya S?gorta Company is the owner of 49% in shares.