YEREVAN, October 14. /ARKA/. The share of insurance industry in GDP Armenia could be 7-12% in the next seven-eight years, said Executive Director of insurance company INGO Armenia Levon Altunyan.

“For a country like Armenia, I think the share of insurance industry in GDP Armenia at the level of
7-12% quite understandable. This is – without any additional load on the budget of Armenian families with full protection of their interests”, said Altunyan in the press-conference on Friday.

He said that today the share of insurance in GDP is 1.75% which is “extremely low indicator”.

“We have started in 1997-1999 with about 0.2% of GDP. Growth is rather weak, but taking into account that the low on mandatory insurance was adopted only last year, it is quite understandable”, he said.

Dates of achieving appropriate level depend particularly on political will.

“During seven-eight years, adoption of four-five laws of mandatory insurance – medicine, insurance of high risk companies and ecological insurance can give the effect about which we speak”, he said.

Insurance legislation of Armenia is one of the developed in CIS countries, and insurance market of Armenia can be considered developed from the pointy of view of normative base and correspondence of insurance market players.

Today there are nine insurance companies in Armenia. In accordance with the data of Central Bank of Armenia, total volume of insurance premiums of all insurance companies operating in the Armenian market, as of June 30, 2011 was over 15.6 billion drams increased more than three times compared to the indicator of the same period of 2010. Volume of insurance compensations at the end of the first half years of 2011 was about 3.2 billion drams increased more than three times compared to the indicator of the same period of 2010. --0--