FMSB: Licenses of insurance agents may be abolished
By Nigar Abbasova
Azerbaijan’s Financial Market Supervisory Body (FMSB) has made a warning to roughly 100 insurance agents on possible abolishment of licenses in case of repeated violation of requirements specified in the legislation.
The authority revealed a number of violations in the activity of insurance mediators (agents, brokers) following the monitoring.
Moreover, FMSB has also revealed certain breaches in the activity of the Odlar Yurdu insurance broker.
“The company has not fulfilled certain requirements during conclusion of contracts and issued deals on the compulsory types of insurance at a discount. Such actions contradict the law,” the message reads.
FMSB, which put forward certain claims to Odlar Yurdu to eliminate revealed violations, seeks to continue its monitoring to increase financial stability of the insurance sector, as well as protect customer’s rights.
The authority suspended licenses of one of the juridical entities and some 131 individuals for three month in June by reason of non-provision of relevant reporting documents. Moreover, licenses of 40 insurance agents were withdrawn due to non-elimination of shortcomings in the defined period.
Head of FMSB, Rufat Aslanli previously mentioned that the authority has already made an assessment of the sector and took a decision on creating competitive environment in the reinsurance market.
Being established in 2016, FMSB aims to license, regulate and control the securities market, investment funds, insurance, credit organizations (banks, non-banking credit organizations and operator of postal communication) and payment systems, as well as improve the control system on legitimating the dirty money and preventing the financing of terrorism, and provide transparency and quickness in this sphere.
Insurance companies of Azerbaijan collected some 285.3 million manats ($178.2 million) in the first half of 2016, as compared to the index of 42.95 million manats ($ 26.83 million) fixed in the same period of 2015. As many as 25 companies that are currently operating in the country made payments worth 101.4 million manats ($ 63.3 million), while the growth in the volume of payments stood at 10.1 percent.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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