May 19, Fineko/abc.az. The Board of the Central Bank of Azerbaijan has taken a decision to cancel the license of local insurer Standard Insurance.
According to the CBA, the company lost its capital fully, could not reliably carry out its activities and violated consumer rights.
"Taking into account those facts, on 19 May the CBA made a decision to cancel the license of the insurer, appoint a temporary administrator for it, and also appealed to the court to declare the company bankrupt," the CBA said in a statement.
The CBA underlined that as a result of the audit in Standard Insurance, it was found out that the overall capital of the company is much lower than the minimum requirement for insurance companies (AZN 5 million).
"Negotiations were held with the insurer about its capital increaes, but the shareholders did not provide a specific plan of action. It is worth noting that the company is operating with low efficiency and completed the last two years with loss," the CBA emphasized.
"In the course of talks with the company’s management we’ve raised repeatedly the matter of company’s behavior in the market, especially in the field of consumer protection. Insurer’s chronic problem of liquidity has led to serious delays in settling insurance claims, which, in turn, has led to growth of discontent of its consumers," the CBA said.
The regulator stressed that it will continue systematic monitoring of the financial stability of the insurance sector and the compliance of the behavior of domestic insurers with the law. All the measures taken are aimed at developing the insurance sector and protecting consumer rights.
Standard Insurance has been operating in the insurance market of Azerbaijan since October 2002. The company rendered services on 28 types of compulsory and voluntary insurance.
Now, Azerbaijan is numbering 21 licensed insurance companies.
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