AZERBAIJAN: Agroinsurance, one step closer to becoming tangible

25 August 2020 — Marina MAGNAVAL
In August, a constituent meeting dedicated to creation of a Joint Agricultural Insurance Company was held in Azerbaijan. Seven insurance companies participated in the meeting, as FINEKO and ABC.AZ analytical and information agency reported with a reference to the Agroinsurance Fund.

On March 4, 2020, the Central Bank made a decision on the minimal amount of the charter capital of the Joint Agricultural Insurance Company (AZN 1 million). As a result of the agreements made by the founders, the charter capital of the company was determined at about AZN 2.19 million (~EUR 1.09 million*).

The decision to establish a Joint Agricultural Company was made within the framework of measures to introduce agricultural insurance in Azerbaijan. The Agroinsurance Fund was registered in February 2020 with the aim of organizing and developing the agricultural insurance system, forming the market structure and control. On January 1, 2020, a law came into force, based on which the Fund got the right to collect insurance premiums, and for this it was decided to create the Joint Agricultural Insurance Company.

* for the following exchange rate:
1 EUR = 2.0052 AZN (as of August 24, 2020)

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