BAKU, Azerbaijan, May 20
By Zeyni Jafarov - Trend:
The measures that are taken by the Central Bank of Azerbaijan (CBA), a regulator of the local insurance market, to capitalize an insurance sector, strengthen its immunity to macroeconomic shocks, and remove participants who have lost financial stability, are important for the reliable development of the insurance market, Executive Director of the Azerbaijan Insurers Association (AIA) Elmar Mirsalayev told Trend.
According to Mirsalayev, the cancellation of the licenses of some insurance companies should be regarded as a recovery step taken taking into account real market conditions.
"This is a very timely step, as the local insurance market is in a new phase of its development," said the AIA executive director.
Any market participant that has lost financial stability may have a negative impact on the dynamics of market activity and the overall market share, he added.
"In this regard, a positive attitude should be shown towards the relevant decisions on the cancellation of licenses in the name of the development of the local insurance market," Mirsalayev noted.
The executive director added that following the results of the first year of the CBA's activity as the controller of the local insurance market, it can be said that the sector has entered a new stage of development.
Earlier, Mirsalayev stated that one of the important issues facing the insurance sector is the need to revise the tariffs and amounts of payments for many insurance products.
The Azerbaijan Insurers Association was registered on December 29, 2006. Currently, 20 insurance companies and one reinsurance company operate in Azerbaijan.
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