About 30% of Armenian insurance market without mandatory car insurance belongs to the company “Ingo Armenia”

01.12.2011 15:33
About 30% of Armenian insurance market without mandatory car insurance belongs to the company “Ingo Armenia”

Exclusive interview with the first Deputy Executive Director of insurance company “INGO Armenia” Arevshat Meliksetyan to ARKA News Agency

“ARKA” – Mr. Meliksetyan, how real do you see in future introduction of life insurance in Armenia?

A.Meliksetyan – Life insurance is a type of insurance which makes 65-70% by the volumes of insurance premiums in the world. In other words, people in the world pay more for life insurance than for other types of insurances. However, for believing of public in life insurance some pre-conditions or reasons are required.

Life insurance will certainly start to develop in Armenia. The issue is when it will take place. It depends also on state support. Now, when Armenia is transferring to multi-level pension system, its implementation is difficult to imagine without life insurance. In this case, the demand for life insurance will be very large.

“ARKA” – Is Armenian market ready to introduce mandatory health insurance?

A.Meliksetyan – The market is not ready yet. However, the State is undertaking steps in this direction, particularly according to the draft state budget 2012 certain funds in the social package are envisaged and one of the four main directions is health insurance. Now the Association of Insurers and state bodies negotiate for starting activities in this direction from January.

Starting from January, clients can conclude individual contracts. For example, teaches of schools can conclude a contract and submit it to the school accounting department which will pay amounts to the insurance company. In other words, decision on signing a policy in any company will undertake the clients themselves and not the organizations or the companies. This procedure is mandatory as car insurance. If this format will work some years , the society, employers and the state will demand for mandatory health insurance.

“ARKA” – Which are the plans of “INGO Armenia” for the next year?

A.Meliksetyan – In 2012 we plan to present new and interesting products to the market. In the frames of our strategy approved by the Board of Shareholders, we intend to strengthen our positions in the local market, maintain the existing niche, make our clients more loyal and put our relations on a higher level.

The company “INGO Armenia” is one of the leaders in the insurance market for already eight years. By mandatory car insurance we are in the second place which is based on the standard approved by the Board, according to which collection of sums of mandatory car insurance should be on the same level as that of a portfolio of voluntary insurance. Today without mandatory car insurance our company covers 30% of insurance market of Armenia. By mandatory car insurance our share in the market makes 18-20%.

“ARKA” – To what extent is Armenian market self-sufficient and is it worth involving new major insurers in Armenia?

A.Meliksetyan – I think there is no necessity in it yet. Today in Armenia there are three insurance companies (eight insurance companies operate in the country) representing international institutional insurance organizations. They are: INGO-Armenia, Rosgosstrakh -Armenia, and Resso. Arrival of any other foreign company will create a lot of concerns, particularly related to the expenses. -0--


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