Azerbaijan begins to establish governing body for agrarian insurance EXCLUSIVE

Azerbaijan has started to establish a governing body – a special insurance company to operate on the collection of insurance premiums, a source in insurance market told Report.

The matter is about and OJSC, which will cooperate with the Agricultural Insurance Fund under the Ministry of Agriculture.

“According to the law, the Fund cannot deal with the collection of insurance premiums. There must be a special governing body for this purpose, and that body is being established with the participation of non-life insurance companies. The authorized capital of the new OJSC is planned to be AZN 2-4 million. All 18 non-life insurance companies were offered to get a stake in the newly-established body. Four of them – A-Group, Amrah Insurance, Ravan Insurance, and Standard Insurance – have already refused to invest in the authorized capital of the body. The rest of the insurers have not shared their opinion yet, but may some of them will say “no.” This process takes a long time. Because the insurers should hold a shareholder meeting. Later on, this issue should be agreed with the Central Bank of Azerbaijan because there are prudential norms. Following this step, there must be signed an agreement to establish the body,” the source said.