AZERBAIJAN: Central Bank revoked the license of Standard Insurance

20 May 2020 — Marina MAGNAVAL
The Central Bank of Azerbaijan (CBA) has decided to revoke the license of Standard Insurance, as the agency FINEKO ABC.AZ informed.

According to CBA, the company lost its capital, which after the audit was much lower than the minimum requirements. The company was not able to carry out its insurance activities, violating the rights of its consumers as well. In this regard, on May 19, 2020 the market authority decided to revoke the license of Standard Insurance and to appoint a temporary administrator. In addition, CBA took legal actions to declare the company bankrupt.

CBA noted that in response to demands to increase capital, the company did not provide any action plan and for the last two years worked with low efficiency and losses. Also, the company's liquidity problem led to huge delays in settlement of insurance claims and increased consumer dissatisfaction.

Standard Insurance started its operations on the Azeri insurance market in October 2002 and has been providing services under 28 types of both compulsory and voluntary insurance. After the license of Standard Insurance was revoked, total number of licensed insurance companies in Azerbaijan decreased to 21, the agency wrote.

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