Insurer: Application of social packages in private sector will increase demand for health insurance

The application of social packages in the private sector will increase the demand for health insurance, Samvel Grigoryan, CEO of RESO insurance company, has told ArmInfo.   

 

He points out that at the moment the state program of social packages applies to the state sector employees only (some 170-180 thsd people). In case the private companies are included in the program, the matter will concern some 500-600 tshd people. 

 

"The inclusion of the employees of non-budget organizations in the state program of social packages will stimulate the growth of compulsory health insurance and contribute to gradual formation of insurance culture, first and foremost, health insurance culture," he says.        

 

He points out that at the initial stage the compulsory health insurance program envisages inclusion of all employees of both state and private companies in the program. First of all, the matter concerns the companies where the work conditions endanger human heath. "Certainly, the compulsory heath insurance will be a kind of burden for the employers, but on the other hand, it will enhance the social security of the population," says Grigoryan.   

 

He notes that starting from 2015 the state employees are to undergo preventive medical checkups at the expense of state funds in order to get the right to participate in the social package program of 2016.   

 

To recall, in 2014 the service of social packages for state employees was transferred to the Health Ministry, but in 2015 it was returned to the insurers. The social package for state employees was 

introduced in Armenia in Jan 2012. One of the components of the social package is compulsory health insurance.  

 

According to the Ranking of Insurance Companies of Armenia by the Agency of Rating Marketing Information (ArmInfo), in 2014 the health insurance premiums amounted to 4.3 bln AMD or 14.4% of the aggregate portfolio of Armenian insurers (down 60.8% versus 2013). The indemnities totaled 4.5 bln AMD (down 27.2% versus 2013). As of late 2014, the number of health insurance contracts was 8,261 versus 113,129 a year before.