BAKU, Azerbaijan, Mar.18
By Zeyni Jafarov - Trend:
The volume of insurance collections in Azerbaijan grew by 7 percent in 2020 compared to 2019, the Central Bank (CBA) told Trend.
According to the CBA, the bulk of the collections fell on life-insurance products. For insurance companies providing life insurance, the growth in collections made up 14 percent, and for non-life insurance companies - 3 percent.
The CBA noted that in order to improve control in the insurance sector, the implementation of a project prepared jointly with the World Bank in connection with the transition to a risk-oriented approach has begun. The fact that insurers' capital requirements under current legislation are not differentiated depending on their risks increases the risks of the sector and poses a threat to financial stability.
At the same time, according to the bank, the formation of reserves is based only on prudential standards, which creates obstacles for the preparation of an adequate reserve corresponding to the accepted risks. The implementation of the project will contribute to the correct and timely identification of risks, the effective use of supervisory resources, as well as an increase in the level of transparency of insurers and requirements for investment policy.
Besides, to strengthen control over the insurance market, work is underway to improve the system of electronic insurance supervision. In order to carry out compulsory real estate insurance operations online, a project has been prepared and submitted to the relevant authorities.
Moreover, measures started to improve the legislation on compulsory civil liability insurance of motor vehicle owners and on compulsory insurance against cases of loss of professional capacity due to occupational diseases and accidents at work. The existing problems are identified, and opinions and proposals based on international experience are being prepared to eliminate them.
Earlier, the General Director of the CBA Ziya Aliyev noted that the Central Bank, which is the regulator of the insurance market in Azerbaijan, continues to effectively contribute to the development of the insurance sector, and an agreement on obtaining technical support was concluded between it and the World Bank.
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