Wednesday, April 6 2011 19:18
Introduction of OSAGO does not lead to expected growth of economic activeness
ArmInfo. No serious changing in the investment policy of Armenian insurance agencies is expected over the current year, Executive Director of the insurance company "Nairi Insurance", Gor Khachatryan, told Arminfo correspondent when commenting on further plans of insurance companies on placement of the insurance reserves formed within the frames of Motor Third Party Liability Insurance (MTPLI) [OSAGO]. Such a scenario fully rules out the expected activeness at the financial market because of formation of the free resources in insurance companies.
In general, Armenian insurance companies kept their insurance reserves in deposits, state bonds and in foreign currency before introduction of OSAGO. The small part of them was also placed in foreign markets - in the shares and bonds of foreign companies. Khachatryan said that this year as well they will continue the same system of investments simply increasing their volume.
Nairi Insurance as well as other insurance companies will still preserve the former structure of investments, when the insurance reserves of the company will be chiefly placed in the banking deposits. In the long-term prospect the company will revise the structure of its investments. Khachatryan said that today they have a problem connected with the lack of specialists in the sphere of the investment activity. This circumstance also is an obstacle for choosing an effective investment policy. Another circumstance is connected with a problem on planning the forthcoming insurance payments on OSAGO over the summer season, when insurance companies fix serious losses, as a rule.
Difficulties when choosing an effective investment policy Khachatryan also connects with absence of attractive investment projects in the country, which could provide profitable, reliable and liquid placement of insurance reserves. He said that at present the state bonds are the most attractive instrument of investment in Armenia from the point if view of profitability.
Armenian legislation also causes difficulties for insurance companies in the sphere of investment activity, as it supposes participation of the intermediary companies, being professional agents of the securities market, when implementing the investment activity.
To note, according to the every quarter report of Armenian Central Bank, the fees of the insurance companies of Armenia for the 4Q 2010 grew by 25,4%, and by 2% as against the same period of 2009 and amounted to 8.3 bln drams. The compensation level in 4Q 2010 grew by 32%, and by 8% if compared with the same period of 2009 and amounted to 1.7 bln drams. The aggregate assets of Armenian insurance companies reached 25.6 bln drams as of 1 January 2011.
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