CBA deploying mechanisms to enhance financial stability of insurance companies

Increasing the financial sustainability of insurance companies will be one of the main directions of the Central Bank of Azerbaijan's (CBA) development strategy for 2027–2030, Ramin Jafarov, head of the CBA's insurance intermediaries supervision department, stated at a training titled "The role of the insurance sector in financial sustainability," Report informs.

According to him, the strategy also provides for the development of innovations and sales channels, the expansion of the online segment, and the improvement of prudential regulation and supervision, including risk management.

Among the priorities for the development of the insurance and reinsurance market, Jafarov named the expansion of voluntary insurance and international reinsurance opportunities, as well as the improvement of compulsory insurance by increasing coverage, boosting supervision efficiency, and developing databases.

He explained that access to these databases will allow insurance companies to issue policies based on necessary information. Currently, in compulsory motor insurance, companies can retrieve vehicle information via the database of the Ministry of Internal Affairs. A similar system is planned to be established for other types of compulsory insurance as well.