Sunday, June 13 2010 12:11

ArmInfo. Representatives of Armenian insurance companies and the Association of Insurers of Armenia are holding a
guest meeting in Stepanakert (Nagorno-Karabakh Republic).

The meeting has been organized on the initiative of Prime Insurance Brokers and with the support of the NKR Government.

ArmInfo's correspondent reports that NKR President Bako Sahakyan has received the Armenian insurers and discussed with them the prospects of insurance in Nagorno-Karabakh. Sahakyan expressed interest in establishing mutually beneficial cooperation with Armenian insurance companies and recommended insurers to aim at coordinating risks and fostering economic growth rather than gaining profit.

During a meeting with the guests NKR Prime Minister Ara Haroutyunyan said that the meeting may stimulate the development of insurance market in NKR and suggested that Armenian insurers appear with practical projects and help the NKR Government to carry them out.

"The old insurance system has fallen apart while the new one is just taking shape. Our economy urgently needs target insurance," Haroutyunyan said.

Today, Haroutyunyan, NKR Economic Development Minister Karen Yesayan, Finance Minister S.Tevosyan and the delegation of Armenian insurers took part in a roundtable on the present state and the development prospects of insurance in NKR. They discussed the possibilities of insuring against agricultural and financial risks, regulating the compulsory motor liability insurance system and mechanisms to gradually introduce this system in NKR. Haroutyunyan said that insurance is an effective instrument for coordinating risks and should be developed. At the same time, he noted that the compulsory motor liability system should not be introduced at once as the local population cannot afford one more duty.

The demand for insurance services in NKR is growing. The meeting in Stepanakert is aimed at discussing the current state of NKR's insurance market and ways to enlarge and improve insurance services in the republic. The key topics of the meeting were ways to solve problems concerning insured loan security and to improve insurance guarantees offered to participants in state purchase tenders.

Representatives of 9 Armenian insurance companies took part in the meeting. The Central Bank of Armenia was represented by member of the CB's Board Aharon Chilingaryan.

There are 10 insurance companies in Armenia providing 12 nonlife class insurance services. In Armenia insurance is developing due to corporate clients mostly. They are quite stable due to the CB's tough requirements (1bln-1.5bln AMD minimum capital).

The law on compulsory motor liability was adopted in May 2010 and will take force Jan 1 2011.