"This decision does not imply their automatic entry into force. Rather, insurers will be given sufficiently long flexible period to conduct recapitalization," the source said.
Azerbaijan is numbering 28 insurance and one reinsurance company. Currently, the minimum capital requirement of insurance companies is fixed at the level of AZN 5 million and reinsurance companies at AZN 10 million. The Ministry of Finance of Azerbaijan intends to increase gradually the minimum requirement up to AZN 10 million and AZN 20 million respectively.
At that, many insurers consider it unlikely that capital requirements will be increased so drastically. As of 1 July the total capital of Azerbaijani insurance companies amounted to AZN 265.776 million.
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AZERBAIJAN: New capital requirement for insurers to be approved these days