A higher level of reserves tends to provide a higher degree of comfort to investors from a credit worthiness point of view, and experience has shown that during times of financial market crises, countries with higher reserves tend to be more resilient.
Therefore, in order to protect policyholders and to prevent the growing negative impact on the insurance market and the financial system in general, the CBK based on the duties and responsibilities arising from the Law on the CBK and the Law on Insurance, has taken the decision to revoke the Insurer’s License.