Central Bank continues reform measures in the insurance field

23-01-2023

23 January 2023, Baku: The Central Bank of the Republic of Azerbaijan continues large-scale and consistent measures aimed at the development of the insurance sector.

The ongoing reform measures, especially regulatory measures in the sphere of compulsory insurance of civil liability of motor vehicle owners (compuslory motor insurance) create ample opportunities for increasing public confidence in insurance and improving the quality of insurance services.   

Recent amendments to the Law of the Republic of Azerbaijan “On Compulsory Insurance” and the relevant Decree on its implementation, as well as the creation of the opportunity of providing compulsory motor insurance certificates on the official websites of the insurance companies will allow to fully digitize the compulsory insurance types and simplify their acquisition.

The continuous development and implementation of the legislation on compulsory motor insurance in Azerbaijan has enabled the integration of the local insurance sector into the international Green Card insurance system since 2015. The insurance sector has shaped an exemplary international reputation in this area, and new opportunities have emerged to take advantage of the international Green Card insurance system. 

Over the past period, the Green Card insurance systems of the Republic of Azerbaijan and Republic of Turkey have been integrated. This made it possible to electronically determine the period of validity of the Green Card when motor vehicles registered in our country enter the Republic of Turkey, and motor vehicles registered in the Republic of Turkey enter the territory of Azerbaijan. In addition to being the first and exemplary practice for countries around the world, this integration has prevented border crossings with fake Green Card insurance certificates.

At the 56th Assembly of the International Council of Green Card Bureaus, the activity of the Compulsory Insurance Bureau (Bureau), which performs the functions of the National Green Card Bureau of Azerbaijan, was highly appreciated, thus, before the completion of the 10-year temporary membership period, the Bureau obtained the full-fledged member status after the 5-year period.

One of the opportunities of being a full-fledged member is the provision of Green Cards of Azerbaijan insurers to insured persons in countries that have not joined the Green Card system.

Starting from 1 January 2023, the process of providing Green Cards of Azerbaijan to persons who applied for motor vehicles registered in the Republics of Georgia and Kazakhstan has started. Thus, the possibility of representing the local insurance sector at the international level has expanded, and the sector has started exporting insurance services to other countries.

The Central Bank of the Republic of Azerbaijan will continue the reform measures in the field of insurance and keep the public informed of the results.