Wednesday, May 5 2010 13:00
The year of 2010 will be successful for "Cascade Insurance" but the crisis will be overcome in 2011
ArmInfo. By the key insurance indices the year of 2010 will be similar to 2009. In particular, the receipts will grow by more than 2% in "Cascade Insurance" over the current year which is the same provided in 2009, director of "Cascade Insurance" company, Garnik Tonoyan, made such a prediction to ArmInfo correspondent.
He thinks that in 2010 the level of compensations will grow a little, which is connected with increasing of the tariffs for medical service, motor repair and other services. But he is sure that the company will be able to preserve benefit at the same level.
The aggregate volume of the receipts of the company was more than 172 mln drams in the 1Q 2010, which is by 34% less than in the 1Q 2009. The structure of the portfolio has changed, in particular, medical insurance prevails, though it is of a temporary nature, he said. "As a rule, at the beginning of the year personal types of insurance prevail, but the balance in the portfolio restores by the end of the year thanks to the active growth in other segments", - Tonoyan explained.
He thinks they will manage to fully overcome consequences of the world crisis in 2011. "To be honest, the economical situation has been improved in general, but reduction of incomes of the population and companies has led to the conservative approach when planning expenses. For this reason, we should not still wait for the active interest of potential customers", - Tonoyan said.
At the same time, the director of the company thinks that the tendency of many-year decrease of tariffs for the insurance services will be suspended. "Today customers often choose insurance companies guided by the attractive low tariffs, but they often do not study the core of insurance and conditions of the contract. It is very much hard to hold back decrease of tariffs all the time, taking into account competition and possible losing of customers if the tariffs are higher than the market ones. The insurance companies are working at a very low equity. This is dangerous, as loss ratio does not fall but grow", - he said and added it is time for the insurance companies to stop and really assess risk.
To recall, 10 insurance companies have been acting in Armenia at present. According to the results of 2009, the aggregate assets of these companies reached almost 17 bln drams, the total volume of premiums was more than 7 bln drams and compensations - 1,7 bln drams.
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