Azerbaijan, Baku / Trend corr. U.Ismaylova / Azerbaijani insurance companies are now not able to cover building and construction risks, Hidayat Abdullayev, the executive director of the Azerbaijani Insurance Association, said.
A building constructed by the company Mutaffakir collapsed on 28 August at 5pm.
Askar Aliyev, the head of the company, was arrested for contravening Article 222 (violation of safety regulations in construction work) of the Criminal Code of Azerbaijan. Seven people died.
"Local companies cannot commit to large risks taking into consideration the current volume of capitalization of Azerbaijani insurance companies," Abdullayev said.
Local companies can cover building and construction risks through re-insurance from large foreign insurance companies, who demonstrate an interest in the Azerbaijani insurance market.
"There are no regulations that make it necessary to insure building construction work in Azerbaijan," Namik Khalilov, the chief of the State Insurance Supervision at the Azerbaijani Finance Ministry, said.
There are 29 insurance companies with minimum authorized capital of AZN 700 in Azerbaijan.