AZERBAIJAN to divide insurance license into insurance and reinsurance licenses

31 October 2013 —
The licensing of insurance activity in Azerbaijan is undergoing changes. In compliance with the amendments to the Law on Insurance, approved today by the MPs, only the companies that received a separate reinsurance license will be able to render reinsurance services. Previously, insurers could carry out insurance and reinsurance on the basis of a single license for insurance activity.

The amendments also provide the underwriter with the right to conduct refresher courses, development and sale of data carriers and special literature related to insurance, development and sale of special software, consulting services to prevent damage. Contests are also organized for the legal due diligence of customer's documents and processes of regulation of damage, insurance risk assessment, analysis of insurance claims, as well as the legal, technical and organizational services for damage control.

Companies that have a reinsurance license may enter into contracts for all classes of insurance. Companies not having a license for compulsory services cannot render services on certain types of reinsurance.

Also, today the Parliament endorsed the amendments to the Civil Code, implying the creation of legislative basis for the start of applying electronic information systems by the insurance companies, thereby ensuring the efficiency and transparency of their activities. The amendments to the Law on Compulsory Insurance against Accidents at Work" say of the inclusion of compulsory insurance against accidents at work in the jurisdiction of the Compulsory Insurers Bureau, change of the rules of calculation of insurance payments. Previously, lump-sum insurance payment was calculated in accord with the rules established by the relevant executive authority, but now it will conform to 12-month salaries of the insured. Also, now insurance payments within the annuity contract will be awarded given to the injured party at the date agreed in the contract, despite the fact that earlier that day was defined depending on the term of the length of the definition of disability or the date of death of the insured.

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AZERBAIJAN to divide insurance license into insurance and reinsurance licenses
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