Regulatory Alerts2023-12-04
Regulation on Limits and Requirements for Reinsurance with Foreign Insurers, Reinsurance Policies, and Catastrophic Risks
The Central Bank of the Republic of Azerbaijan issued Resolution No. 54/1 to establish mandatory limits and criteria for ceding insurance risks to foreign insurers. The regulation mandates that foreign reinsurers maintain valid credit ratings or corresponding solvency ratios, with strict caps on participation for proportional and non-proportional contracts. It further requires insurers to retain up to 20 percent of their aggregate capital for catastrophic risks, submit quarterly accumulation reports, and maintain comprehensive reinsurance policies aligned with their risk profiles.
Share