New rules for the use of insurance reserves are being introduced in Azerbaijan

Prime Minister of Azerbaijan Ali Asadov signed a resolution approving the "Rules for the Use of Insurance Funds, Including Insurance Reserve Fund Resources."

In accordance with the adopted decision, the sources of insurance fund formation are:

- insurance contributions;

- income received from the placement of funds designated for the formation of the insurance reserve fund in bank deposits, which must meet established reliability criteria and must not have had any instances of overdue income payments to the State Social Protection Fund under the Ministry of Labor and Social Protection of the Population of the Republic of Azerbaijan over the past 24 months;

- banks whose sovereign rating, assigned by international rating agencies, is no more than two notches below the maximum level;

- systemically important banks operating on the territory of the Republic of Azerbaijan;

- other sources not prohibited by the current legislation of the Republic of Azerbaijan.

Up to 5% of insurance contributions is allocated to the insurance reserve fund. The funds are accumulated in a special treasury account of the ministry and transferred to a special bank account of the fund, where corresponding accounts are opened for operations with these funds.

The unused balance of insurance funds, including reserve fund resources and income from their placement, is carried over to finance the following year's expenditures.