Azerbaijan, Baku / corr. Trend U.Ismaylova / Shukur Huseynov, the Deputy Chairman of Management of the insurance company Azergrant, stated on 29 June that the reforms after joining Azerbaijan to the World Trade Organization (WTO) would create an impetus for internal development in the insurance market of Azerbaijan.
"After any country joins the WTO, the organization offers them a stage-by-stage period for holding economic reforms," Huseynov said.
According to Huseynov, WTO principles are reflected in the country's new insurance law, which will be adopted during the parliament's autumn session.
In compliance with the new law, all insurance companies should change their form of assets by a closed stock company and open stock company, as well as limits for investors will be liquidated. Foreign investors can be granted only 49% of shares.
Presently, there are six foreign insurance firms out of twenty-nine in Azerbaijan.
Joining the WTO does not mean sharp changes in all economic spheres for Azerbaijan.
A definite term will be given to the country to realize the reforms. During this term, when foreign capital prevails in the country's insurance market, competition will be observed, which can be frightening for local companies.
"After some period, companies that are to survive and not lose their potential clients will appeal, as well as companies with more interesting insurance products and more capitalization. Truly, participation of professional insurance companies at the market will serve for healthier competition," Huseynov added.