Merger or voluntary liquidation of small insurers

16:18 - 31.01.2024

January 31, Fineko/ It is not ruled out that small insurance companies in Azerbaijan will merge or voluntarily leave the market.

ABC.AZ reports that CBA chairman Taleh Kazimov said about this during a neüs conference on changes in the discount rate parameters.

Kazimov pointed out that the situation in the domestic insurance market is generally stable.

"Starting from next month, the CBA will put forward corporate governance requirements for insurance and investment companies. One of those requirements is to have a development strategy designed for at least three years. In general, the financial sector is quite stable. Here, only the merger of small organizations or voluntary liquidation is possible. During the merger, the CBA also asks for a strategy. Currently, banks are not faced with the question of a possible merger, it is more relevant to insurance companies. Some of them may be discussing a voluntary merger or liquidation. From angle of sustainability, we do not see problematic organizations either in the banking or insurance sector," he added.

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