New insurance company to be established to prevent capital outflow

Khayal Mammadkhanly, the President of the Union of Insurers, told Trend that the key objective of the new establishment was to prevent the outflow of the capital of insurance market.

Mammadkhanly noted that at present 70-75% of insurance fees collected from companies active in the country flows abroad, as the risks of retention of companies are less probable – only $2.4m.

The new company will enable to retain definite part of capital in the country. Mammadkhanly said that the statutory capital of the NRIC will comprise around $10m. A total of 20 local companies will found the NRIC, while the international financial organizations are also expected to participate in it to increase the capital of the new company.

At present 29 insurance companies, including 22 working with local and 7 foreign capital,, function in the country. The total statutory capital of the companies comprises $24m.