YEREVAN, December 25. /ARKA/. “Insurance market of Armenia is still in embryonic state”, said Aram Piruzyan, Executive Director of insurance company “London-Yerevan” to the journalists of ARKA.

Now it is difficult to prognose in what direction this market will be developed. “There is still no competition in insurance market of Armenia. It is reflected only in the reduction of insurance tariffs and it is not considered healthy competition”, he said. It assumes comprehensive policy – improvement of service, introduction of literate marketing and expansion of the market on the account of segments of economy and consumers.

“Today competition is limited by “attracting” the clients of other companies through insurance tariffs. In its result, low prices are formulated in the market and business loses its sense”, he said. Market will solve all the problems on the benefit of its participants and clients itself by participation of detailed, planned and careful state intervention. As of September 30, 2009, 12 insurance companies are operating in Armenia.

As of this date, total assets of insurance companies were 14.2 billion drams and total liabilities - 4.3 billion drams. As of September 30, 2009, own capital of insurance companies was 9.9 billion drams and total volume of charter capital – 7.9 billion drams. By the results of third quarter the volume of net income of insurance companies was 1.4 billion drams and insurance bonuses – 5.8 billion drams. From January 1, 2006 control over the insurance market is implemented by the Central Bank of Armenia. G.K. -0—