Azerbaijani Insurance Market should not Totally Emulate International Standards : Ukrainian Expert
Azerbaijan, Baku / Trend corr U. Ismayilova / The Azerbaijani insurance market should not totally emulate the international standards, the state of the local market should be considered, the chairman of the insurance committee of the Ukrainian Financial Analysts Association, the deputy president on insurance of Ukrainian Providna company, Vacheslav Chernakhovski, said.
Within the framework of Azerbaijan's entering the WTO, the country introduces international experience and standards whilst developing new Law on Insurance.
According to Chernakhovski, the Azerbaijani insurance market is now at the development stage and adoption of the new law will be another impetus for that. "I believe the authorized capital of insurance companies should be extended in the course of calculations of premiums and payments of the corresponding companies," he said. He was commenting on the increase of the authorized capital of Azerbaijani companies to AZN 1mln due to a new Law on Insurance to be adopted in Parliament in autumn.
The first Law on Insurance in Ukraine was adopted in 1996 which considered the recommendations of the European Union. According to the currently active Law on Insurance in Ukraine, the minimal authorized capital of the companies should amount to €1mln.
Chernakhovski stressed that presently Ukraine is devising a new Law on Insurance which is expected to be adopted in no less than one year. According to the new law, the authorized capital of the companies will have to amount to €5 mln, taking into consideration the economic development rates.
Speaking of the problems of the insurance market of Azerbaijan, the expert stressed that the retail business should develop the market of the Country because the corporate insurance market which covers large insurance risks has developed at a high level.