Azerbaijan, Baku / corr. Trend U.Ismaylova / Eldar Mammadov, the deputy chairman of the Management of Tural Sigorta insurance company, has stated that the Azerbaijani insurance companies with little capitalization are not interested in drawing additional local capital.
According to Mammadov, now the Azerbaijani weak insurance companies remain in shadow as a result of monopoly at insurance market.
The new Law on insurance, which will be adopted by the Azerbaijani Parliament at the autumn session, will negatively affect on insurance companies with little capitalization.
After adoption of the law, insurance companies will change their current ownership form (closed stock company and open stock company), whereas the current limits set for foreign investors allowing them to hold only 49% of shares in insurance companies were liquidated.
"Our company does not intend to attract additional local capital. We will try to draw foreign capital, Mammadov said.
In case an insurance company turned out unable to draw additional local or foreign investors after Azerbaijan's joining to the World Trade Organization (WTO), then the company will have to stop operating. Such company cannot compete at the developed market, Mammadov considers.