Regulatory Alerts2025-10-29
Regulations for Determining the Required Capital of Insurers
The Ministry of Finance of Azerbaijan issued these regulations to require insurers and reinsurers to calculate and report their capital using standardized solvency methods. Insurers must maintain required capital equal to the greater of a supervisory minimum or a computed solvency level, derived via premiums- and payments-based formulas for general insurance alongside risk-capital adjustments for life policies. The rules mandate quarterly filings within twenty days, certified by board chairs and chief accountants, while applying fixed adjustment coefficients to accurately reflect reinsurance exposures.
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