Thursday, December 9 2010 19:09
In the face of the introduction of compulsory motor third party liability insurance in Armenia the clientele of local insurance companies is quickly growing
ArmInfo. In the face of the introduction of compulsory motor third party liability insurance in Armenia the clientele of local insurance companies is quickly growing. All of the companies give preference to corporate insurance but ArmInfo experts are sure that by the end of 2010, following the start of motor third party liability insurance activities on Oct 18 2010, the share of individual customers will grow.
As of Oct 1 2010 the share of legal entities in the total amount of collected insurance fees made up 83.8% (this figure covers 9 companies, RESO did not provide necessary information), the share of physical entities - 16.2%. ISG, the company serving Armenia's national air carrier, Armavia, had the biggest share of corporate insurance - almost 97%, RASKO - the smallest one - 52.3%. In individual insurance there is an opposite situation: RASKO - 47.7%, ISG - just 3.1%. In Jan-Sept 2010 the amount of insurance charges collected from individual and corporate customers grew by 48% and 21%, respectively. 4 companies showed decline in corporate premium portfolio (ISG - by 23.2%), 5 companies - growth (Rosgosstrakh-Armenia - by 2 times). 2 companies showed decline in individual premium portfolio (RASKO - by 26.8% and Sil Insurance - by 13.7%), 7 companies - growth (Rosgosstrakh-Armenia - by almost 13 times). Rosgosstrakh-Armenia, who entered the market two years ago, has increased its corporate premium portfolio due mostly to active insurance against financial damages, insurance of land transport and property against fires and natural calamities and its individual premium portfolio due to insurance of land transport, people going abroad and property against fires and natural calamities.
To remind, Oct 18 2010 Armenia's insurance companies started selling motor third party liability insurance policies and have already collected 10% of expected charges. The law on compulsory motor third party liability insurance is taking force Jan 1 2010. According to the Central Bank's tariff plan, developed by the Bureau of Motor Insurers, the minimum basic amount of a motor third party liability insurance premium should be 18,634 AMD, the maximum one - 110,313 AMD.
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