Friday, April 15 2011 17:23
Corporative medical insurance market to continue growing in 2011
ArmInfo. The alterations and amendments to the law "On value added tax" led in 2010 to the growth of medical insurance in Armenia by 40%, executive director of the insurance company "Garant-Limens", Artak Martirosyan, said at today's press-conference.
He also added that in 2008 and 2009 the share of the medical insurance in the general premiums of the Armenian insurance market was a little more than 8%. In 2010 the volume of premiums of the contracts for medical insurance amounted to 986.1 mln drams having grown by 42% versus 2009.
As representatives of Armenian Finance Ministry, Vakhtang Mirumyan said, the alterations and amendments to the law "On value added tax" were made on 23 April 2010. According to these alterations, taxes are not imposed upon the fees paid by an employer for medical insurance. He said that such legislative changes not only create tax stimulus for the employers, but also promote development of insurance companies which specialize at medical insurance. "It is no secret, that the possibility of resolving the health problems of citizens at the expense of the budget is limited. For this reason, such alterations will make it possible to involve employers in settlement the health problems of their workers", - he said.
Executive Director of Garant Limens Artak Martirosyan thinks that the medical insurance market volumes in Armenia will keep on growing in 2011 and conditioned his forecasts with the following parameters. For instance, after the amendments and alterations to the law on income tax, the company fixed 64% growth in medical insurance premiums in 2010 as compared with 2009. By late 2011 the company expects 60% growth in medical insurance premiums.
Compensatory payments for that type of insurance have also grown: if in 2009 (before these amendments) the volume of medical insurance indemnities made up a little more than 105 mln AMD, in 2010 this indicator grew by 45% to 156 mln AMD. In total, the amount of compensatory payments in 2010 grew by 57% and totaled 569.4 mln AMD against 361.6 mln AMD in 2009. Martirosyan pointed out that the main share in the medical insurance portfolio (98%) falls on corporate agreements.
Martirosyan said that in 2008 the average medical insurance premium was 71 thsd AMD, in 2009 – 95 thsd AMD, in 2010 - 106 thsd AMD. He said that the policy appreciation is conditioned by the changes in the list of medical services included in the medical insurance agreement by the employer.
According to the Ranking of Insurance Companies of Armenia, in 2010 the share of Garant Limens in the total volume of medical insurance market made up 33%. The medical insurance premiums collected by the company amounted to 303.8 mln AMD as of 1 Jan 2011 (64% annual growth), the total volume of premiums amounted to 404.8 mln AMD (83.5% annual growth). As of 1 Jan 2011, the company's assets totaled 2.158 bln AMD, total capital - 1.4 bln AMD. Within the frames of motor third party liability insurance the company signed 25,000 agreements.
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