Regulatory Alerts2020-06-18
Determination of the Minimum Required Capital for Insurers
The Board of Directors of the Central Bank of Azerbaijan issued Decision No. 08/2 on March 4, 2020, to establish the minimum required capital thresholds for various insurance operations. The decision mandates that non-life insurers maintain 5,000,000 manat, life insurers 10,000,000 manat, exclusive reinsurers 20,000,000 manat, standard reinsurers 5,000,000 manat, and joint agricultural insurers managing the state system 1,000,000 manat. The Legal Department is further directed to submit the decision for state registration within three days of issuance.
BOARD OF DIRECTORS OF THE CENTRAL BANK OF THE REPUBLIC OF AZERBAIJAN DECISION No. 08/2 Baku, March 4, 2020
On the Determination of the Minimum Amount of Required Capital for Insurers
With a view to determining the minimum amount of required capital for insurers, and based on Article 22.0.17 of the Law of the Republic of Azerbaijan "On the Central Bank of the Republic of Azerbaijan" and Article 79.2 of the Law of the Republic of Azerbaijan "On Insurance Activities", the Board of Directors of the Central Bank of the Republic of Azerbaijan DECIDES:
-
The minimum amount of required capital for insurers shall be determined as follows: 1.1. For non-life insurance activities - 5,000,000 (five million) manat; 1.2. For life insurance activities - 10,000,000 (ten million) manat; 1.3. For reinsurance activities conducted exclusively - 20,000,000 (twenty million) manat; 1.4. For insurers conducting reinsurance activities - 5,000,000 (five million) manat; 1.5. For joint insurers managing the agricultural insurance system on behalf of the agricultural insurance authority - 1,000,000 (one million) manat.
-
The Legal Department (R. Malikova) is tasked with ensuring that this Decision is submitted to the Ministry of Justice of the Republic of Azerbaijan for registration in the State Register of Legal Acts within 3 days.
Chairman of the Central Bank Elman Rüstəmov