FMSB: Azerbaijan’s insurance market open for local, foreign investors

23 June 2016 17:05 (UTC+04:00)

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By Nigar Abbasova

Azerbaijan’s insurance market provides all necessary conditions for local and foreign investors, Rufat Aslanli, Chairman of the Board of Directors of Financial Market Supervisory Body said while addressing the 7^th Azerbaijan International Insurance Forum (AIIF - 2016) on June 23.

Azerbaijan International Insurance Forum that brought together more than 200 participants from over 20 countries was focused on the on actual topics for Azerbaijan`s and regional insurance market. The event covered issues of agricultural insurance, international practice and models in this sphere, adequate assessment of risks, automobile insurance, tariff and systems for assessment of damages in this field, electronization of processes.

He said that the country has already taken certain steps for the development of the insurance market and the work on this direction is currently underway.

“The insurance charges have increased threefold, while the rate of insurance payout has doubled for the past 6-7 years. Whereas much work has been carried out in the insurance sector, the sphere still remains one of the issues of great concern for the population of the country. Complaints over the insurance services predominate over the total number of appeals to the Financial Body,” he said, stressing that the fact necessitates further improvement of the sphere.

Aslanli went on to add that the processes occurred in the world economy have negatively influenced the insurance sphere of the country.

“We have faced a decrease in demand in the sphere of insurance services. The decrease is also observed in the volume of earnings and reserves of the insurance companies. Main objectives of the Supervisory Body are adaptation of the insurance market to the processes, as well as increase of stability within a short period of time,” he explained.

Touching upon the issue of the economic reforms currently being implemented in the country, he said that the actions are directed at the restoration of the country’s welfare by means of non-oil sector.

Aslanli emphasized that economic reforms cover 4 main directions.

“We are working on the creation of sustainable macroeconomic environment in the country. The national currency rate, as well as the rate of inflation is currently under controlled economic frameworks. We seek formation of the economic environment, which is able to provide for the decrease of the transactional business expenses. The measures are supported by the government”

He said that the provision of broad access to the investment and financial services is also among the main directions. “We have already defined all necessary actions on this direction and started to implement them. The actions will cover the activity in the banking, financial and insurance sectors.”

Aslanli also underlined the importance of flexible and effective judicial reform creation.

Main directions of the strategic “road map” of the national economy as well as priority sectors of the economy have been set by the president. The main objective of the road map is to ensure sustainable economic growth, correctly define the development strategies for auxiliary sectors that contribute to creating the economy’s leading sectors and the necessary economic infrastructure. Strategy project on the economic improvement for 2016-2020 is expected to be prepared by mid-September, 2016.

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova