AZERBAIJAN: The State Insurance Commercial Company liquidated

7 February 2024 — Marina MAGNAVAL
By decree of the President of the Republic of Azerbaijan dated January 31, 2024, the State Insurance Commercial Company was liquidated, Trend reports.

In 2022, after the powers and main activities of the State Insurance Commercial Company, consisting of state compulsory personal insurance of military personnel and law enforcement officers, were entrusted to the Ministry of Labor and Social Protection of the Population of Azerbaijan, several steps were taken to improve the company’s activities. However, due to high competition, its weight in the domestic insurance market decreased. Considering the lack of special advantages compared to private insurance companies, it was not possible to ensure its profitable operation, and the risks of financial losses for the state, which is the founder of the company, increased.

Given this situation, a decision was made to voluntarily liquidate the company. In connection with the voluntary liquidation of the company, a liquidation commission will be created.

It is noted that the liquidation of the company will be fully ensured at the expense of its own funds and reinsurance guarantees, and there will be no additional financial burden on the state budget.