Azerbaijani Ministry of Finance will liberalize the conditions for entry of foreign investors in the country's insurance market.
This is envisaged by the draft law on changes to the 'Law on Insurance Activities' that was recommended by the Parliamentary Committee for Economic Policy of Azerbaijani Milli Mejlis (parliament) on Monday for consideration at the parliament's plenary session.
"Previously only foreign legal entities and individuals, engaged in insurance activities could acquire shares in the capital of Azerbaijani insurance companies, whereas now we are expanding the investment base," chief of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan, Namig Khalilov said.
According to the amendments to the law, foreign investors, not engaged in insurance activities, can have up to 50 per cent of stakes in the authorized capital of the local insurance companies.
In this case, this limitation does not affect the international financial institutions, where Azerbaijan is a member, as well as foreign insurance companies and foreign institutional investors (banks and credit institutions, pension funds, investment funds).
Aside from this, according to the amendment, the share of foreign natural person in the authorized capital may not exceed 10 per cent , while the total share several foreign individuals can not exceed 30 per cent.
There are 28 insurance companies and one reinsurance company in Azerbaijan.
There is a foreign participation in the capital of five insurance companies. In one of them - Chartis Azerbaijan - 100 percent of the shares are owned by foreign capital.