AZERBAIJANI insurance companies request right to place their assets abroad

11 December 2013 —
The Ministry of Finance of Azerbaijan is not ready to establish a new capital requirement for insurance companies. Deputy Finance Minister Azer Bayramov says that the new capital requirement can be fixed before the end of 2013.

"The Ministry plans a more gradual increase of the requirement for the minimum capital of insurance companies than it was done in the banking sector. We don't think we should refrain from raising the capital requirement, as in the past three years the insurance market has experienced rapid growth, and the insurance itself has great social significance," Bayramov said.

Earlier it was expected that the capital requirement for insurance companies will be increased from 5 million to 10 million manats and for reinsurance companies from 10 million to 20 million manats.

"At the moment the scale of increasing the requirement has not been established finally that is linked with technical (amendments to some laws) and practical issues. So, we have to define a new scheme of placement of insurance assets, in which there will be a great need after the capital requirement is raised. There are various offers from insurance companies on the occasion. For example, some insurers suggest allowing them to place their assets abroad. All these proposals are currently being considered but a final decision has not been made yet," Bayramov emphasized.

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AZERBAIJANI insurance companies request right to place their assets abroad
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