Wednesday, September 27 2017 16:28
Emmanuil Mkrtchyan

Successful business is forging for years - to the jubilee of IC "INGO Armenia"

Successful business is forging for years - to the jubilee of IC "INGO Armenia"

ArmInfoSuccessful business forges for years, leaving behind itself the difficult years of becoming. And from what principles were used as the basis of this process, what mission accompanied and guided the company in the process of its growth, this is the result of achieving a qualitative maturity. These days, INGO Armenia, one of the most successful insurance companies in the country, celebrates its 20th anniversary. And she began with the idea that appeared in a small company of like-minded people who decided to start an insurance business in the country in the classical sense. So was born in 1997, an insurance company called "Efes", denoting a medieval cold weapon with an obligatory attribute of security - a guard designed to protect the hand. For many years, the company was led by its co-owner Levon Altunyan, a medical student who apparently failed to deny the new Prime Minister Karen Karapetyan an invitation to head the Ministry of Health for the sake of major systemic changes in the field of national health. The company was headed by his youngest comrade, like-minded person who has worked in the company since the beginning of the 2000s, having studied at Cambridge University, Arevshat Meliksetyan. We asked him for a meeting to talk about the company's path, the situation in the insurance market and its prospects. The company you led was one of the first companies in the Armenian insurance market. And you joined her pretty early. Could you briefly describe the path that has been taken? After all, the market grew with great difficulties and huge numerical losses. How did "Ephesus" manage not just to survive, but by attracting a large strategic investor, to become a leading player in the market?

First a bit of history. The company "Efes" was registered in September 1997, having obtained the license of the insurance inspection of the Ministry of Finance of Armenia and thereby enlarged a large list of insurers, consisting of almost three dozen companies. This was the time when the legislative ordering of any commercial activity began in Armenia, laws were passed on LLC and Joint Stock Companies. But the insurance market itself was poorly regulated, and many companies were created as capped ones, I would say "pocket", and worked in the orbit of relatively large business structures that used insurance for their own commercial purposes by well-known at that time different financial schemes. We were not connected with anyone and the company went the other way, by becoming a classical independent business structure. 

When I joined the company while still a student at the Institute of National Economy, there were only 5 of us. Studying in the institute of insurance business and while working for the company, I fell in love with this work. She absorbed me all, it was very interesting, and I soon realized that I had connected this work all my life. I was one of the first, after me tens and dozens of young specialists came to us, and so the company began to develop its own corporate culture, inspired by its co-founder, Levon Altunyan, and supported by a desire for professional excellence. This was a very important circumstance, for it seems to me that it played a crucial role in the fact that out of a large number of existing insurers, the Russian insurance giant, Ingosstrakh, which decided to enter the Armenian market, in 2004 chose us quality, if I may say so, of the takeover object, acquiring a 75% stake in Efes and renaming it, according to its strategy, to INGO Armenia.

I remember that during these years the insurance market was shaking from time to time. Even HSBC Holding established its insurance company in Armenia, but after the first serious insurance event, it turned down its activities. Apparently, there was no faith in the market.

Initially, Ingosstrakh also came to Armenia after its customer, the investor - Siberia Airlines, which purchased our Armavia, and under Armenian law, only Armenian insurers had the right to insure aviation and other risks. But even before the deal with Ingosstrakh, Efes set itself an important task of meeting international standards, thanks to which the majority of the company's clients were Armenian representative offices of foreign companies, funds, international and diplomatic missions, which demanded a high level of service. We already had contracts for reinsurance coverage with a number of the largest reinsurance companies of France, Germany, companies - members of the London market "Lloyds". I think this fact helped also that the Russian investor paid special attention to us. In fact, if you remember, 2004 was called the year of the Russian financial assault in Armenia, marked by two major deals: Ingosstrakh bought Efes, and VTB Bank - Sberbank of Armenia. But soon the undeveloped Armenian insurance market faced serious challenges ... After the transfer of the functions of the financial mega-regulator in 2006, the subsequent adoption of a number of legislative amendments, regulatory decisions, including the increase of the minimum statutory capital stake, the market began to clear. After the adoption of the 3-on-account law on insurance, the market left about a dozen players. The process of consolidation continued, but at the same time in 2008, new players came to our market in the person of large Russian companies Rosgosstrakh and RESO-Garantia.

And, nevertheless, it was the major players that helped consolidate the market.

Shareholders of large companies had a direct interest in the absorption of small. The struggle was for every client. We, for example, purchased portfolios of five insurance companies - Fintrast, First Insurance, Griar Insurance, Alliance Flush and Cascade Insurance. And we believe that we have acquired not only a clientele, but also specialists, and people started working in our company who created the insurance market from scratch, they know him well, both professionally and, I would say, on an intuitive level. Today these people occupy top positions in INGO Armenia. 

And of course, the turning point in the development of the market was the adoption of the law on OSAGO, which gave a powerful impetus to the development of insurance culture and the market itself. So, with the adoption in 2011 of the law on compulsory motor third party liability insurance, our company has grown in size by 7 times. If before the law we worked a little more than 40 people, but now more than 280. We never saved our employees' training. We have 7 candidates of science, several people have graduated from major Western universities in the specialty of insurance, our employees teach in leading universities of the country. And, nevertheless, the company is young, the average age is 28 years, there are a lot of young people and we train it.

 

"INGO Armenia" is the market leader in the class of medical insurance. And all of us expect in the near future a new kind of compulsory insurance - medical.

 

We are now seriously preparing for the second key stage of market development - the introduction of CHI. The program of transition to MHI will be implemented in stages. First, from October 1 this year, civil servants will receive a social package, then citizens falling under the category of underprivileged and in the future, the timeframe has not yet been established, all other working citizens. We are insurers, we are aware that from the success of the first stage, the state will entrust us with the management of the second and third - full transition to the compulsory medical insurance.

Our analytics shows that "INGO Armenia" has the most diversified portfolio. How do you manage to keep the middle ground with such temptation as compulsory motor third party liability insurance (MTPL)?

The company's board of directors adopted a special decision limiting the CMTPL premiums to a 50% limit. All the rest is a well diversified portfolio of voluntary types, symmetrically disaggregated by property and medical insurance, car insurance (CASCO), liability insurance (professional), insurance of tourists leaving abroad. Actively working with banks, insuring property on mortgages, borrowers insure against accidents.

That is, do you manage to maximally diversify the portfolio in order to achieve moderate market risks?

Of course, we must have a balanced portfolio and we succeed. Otherwise, we may find ourselves in a zone of increased risks. You said about the important direction of corporate culture - the serious costs of training. I remember "Ingo Armenia" actively participated together with other companies in the training program for insurance mathematicians - actuaries. The demand for such specialists is formed in the market or is it too early? The need for such specialists is growing, certainly. Our work with universities has something to give, but it seems to me, while the return is incomplete. But there is a demand for actuaries - these are those experts who are important for us, who are counting the line of risk for which it is impossible to intervene. They also calculate tariffs, provide analytics, carry out technical analysis and give forecasts. Moreover, the Central Bank, by its force decision, ordered the company to have a staff of actuaries, they are responsible for both reserves and tariffs. Before any conclusion of a serious contract, we need to have an actuarial conclusion. This is correct, without it anywhere. However, in reality, despite a certain demand for such specialists, there is still little or no qualitative offer, or universities fail to cope, or people are leaving to work in another area. About why activists are needed, the development of a concept on CHI can serve as an example. Calculations for the Ministry of Health on these issues have been conducted by specialists from the insurance companies - actuaries since months 5-6, since the Ministry of Health itself was not in a position to do so.

Today much is said about agricultural insurance. INGO Armenia" tested this market a couple of years ago and came to the conclusion that the risks there simply go off scale, since the industry is completely unprepared for this.  You are right, the industry is completely unprepared and, secondly, there is no scale effect. A large  number of laws  does not work here yet, which means it is too early to talk about insurance of agricultural risks. The government and the market are thinking about this, thinking about how to prepare the industry for this service. But, at the same time, there is already a concept of insurance of dangerous objects. It's also about compulsory insurance. This document, on behalf of the government, is prepared by the Ministry of Emergency Situations and we help it in this. The bill is discussed, opinions are collected. I think not far off, when another type of compulsory insurance of dangerous objects will be adopted in Armenia.

Our company strives to be a locomotive in the further development of the insurance market. Having penetrated this idea, the whole staff of our employees lives and works. Thus, we are changing our country for the better and transferring our experience and our attitude to work from generation to generation. Only in this way, I'm sure, our company will dynamically and harmoniously conquer tops after tops.

Thank you for the interview, success and with the anniversary of you!

Related articles
 Friday, May 5 2017

ArmInfo.

 Thursday, April 13 2017

ArmInfo.

POST A COMMENT
Input digits     


News
Pashinyan: Armenia plans to turn from agrarian to technological  countryPashinyan: Armenia plans to turn from agrarian to technological  country
Year-over-year growth of economic activity in Jan-Aug 2018  accelerated from 5.5% to 7.7%Year-over-year growth of economic activity in Jan-Aug 2018  accelerated from 5.5% to 7.7%
Research: 95% of seasonal and 70-75% of long-term Armenian labor  migrants keep their way to RussiaResearch: 95% of seasonal and 70-75% of long-term Armenian labor  migrants keep their way to Russia
Armenian banks and Central Bank of Yerevan will work on Sept 21-22  because of elections of Yerevan`s MayorArmenian banks and Central Bank of Yerevan will work on Sept 21-22  because of elections of Yerevan`s Mayor
The ban on transportation of grain by truck in Georgia is postponed  until the end of this yearThe ban on transportation of grain by truck in Georgia is postponed  until the end of this year
Pailak Tadevosyan: Governments change in Armenia, but taxation  approaches do not changePailak Tadevosyan: Governments change in Armenia, but taxation  approaches do not change
CBA: In Armenia, the annual dynamics of the card market has sharply  reversed with a decline of 16%.CBA: In Armenia, the annual dynamics of the card market has sharply  reversed with a decline of 16%.
Armenia`s SRC announces double increase in VAT refunds and return of  income tax to compensate interest on mortgagesArmenia`s SRC announces double increase in VAT refunds and return of  income tax to compensate interest on mortgages
Central Banks of Armenia and Russia will exchange information on  cyber threatsCentral Banks of Armenia and Russia will exchange information on  cyber threats
Deputy Prime Minister of RA: Statistical information is a resource  for sustainable development of economy, demography, social and  environmental spheresDeputy Prime Minister of RA: Statistical information is a resource  for sustainable development of economy, demography, social and  environmental spheres
IDBank in cooperation with EIAA will provide local  producers-exporters with affordable, unsecured, risk- free financingIDBank in cooperation with EIAA will provide local  producers-exporters with affordable, unsecured, risk- free financing
Expert: Armenia has a problem with effective use of water resources,  rather than small hydropower stationsExpert: Armenia has a problem with effective use of water resources,  rather than small hydropower stations
Polymetal International plc has been included into the Dow Jones Sustainability Emerging Markets Index (“DJSI”) Polymetal International plc has been included into the Dow Jones Sustainability Emerging Markets Index (“DJSI”)
Wheat importers demand to lift Georgian government ban on  transportation of wheat by roadWheat importers demand to lift Georgian government ban on  transportation of wheat by road
Private taxi drivers to be released from any kinds of taxes Private taxi drivers to be released from any kinds of taxes 
Hanergy Chinese company is interested in building an enterprise  producing solar batteries in ArmeniaHanergy Chinese company is interested in building an enterprise  producing solar batteries in Armenia
Armenia will take part in the program of the EBRD "Green cities"  worth $ 228 million
Plant Plant "Rusal" in Armenia began to reduce production due to sanctions
Investment forum Investment forum "Energy Week 2018" to be held in Armenia
Head of Central Bank of Republic of Armenia Artur Javadyan was  re-elected to post of Chairman of Interstate CouncilHead of Central Bank of Republic of Armenia Artur Javadyan was  re-elected to post of Chairman of Interstate Council
In the border communities of Tavush region of Armenia, process of  buying grapes beganIn the border communities of Tavush region of Armenia, process of  buying grapes began
The third annual The third annual "Eurasian Week" will be held in Armenia from October  22 to 24
Advisor to the Minister: By 2030, the volume of production of jewelry  and faceted products in Armenia can reach $ 1 billionAdvisor to the Minister: By 2030, the volume of production of jewelry  and faceted products in Armenia can reach $ 1 billion
Gagik Mkrtchyan: Armenia actively participates in the development of  a project to create a Eurasian jewelry brandGagik Mkrtchyan: Armenia actively participates in the development of  a project to create a Eurasian jewelry brand
Advisor to Minister: Holding Advisor to Minister: Holding "Eurasian Week" forum will be a good  platform for discussing areas of cooperation in jewelry and faceting  sectors
VTB Bank (Armenia) has already cancelled fines / penalties for 2000  bad loans amounting more than 1 billion dramsVTB Bank (Armenia) has already cancelled fines / penalties for 2000  bad loans amounting more than 1 billion drams
EEC Council approved a EEC Council approved a "roadmap" for implementation of interim  agreement on establishment of a FTZ between EEU and Iran
Agreement of the EEU member states on harmonization of legislation in  financial sector envisages final rapprochement of national standards  by 2025Agreement of the EEU member states on harmonization of legislation in  financial sector envisages final rapprochement of national standards  by 2025
Central banks of EAEC member states intend to expand cooperationCentral banks of EAEC member states intend to expand cooperation
Products of Products of "Armenal" factory in Yerevan can return to American market


Exchange rates
20.09.2018
RUB7.280.06
USD482.44-1.18
EUR564.60-0.99
GBP637.06-0.25
CAD373.810.44
JPY43.00-0.05
CNY70.40-0.13
CHF499.37-1.12

Experts
Rouben Indjikian: Everyone should follow the established unified and fair rules of the gameRouben Indjikian: Everyone should follow the established unified and fair rules of the game
Mher Arakelyan:  Armenia`s payment business has great prospectsMher Arakelyan:  Armenia`s payment business has great prospects
Rating-Agentur Expert RA GmbH and AmRating issued an industry report  on Armenia`s banking systemRating-Agentur Expert RA GmbH and AmRating issued an industry report on Armenia`s banking system
Igor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care ofIgor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care of
Ara Khzmalyan: Armenia is comfortable to Russian touristAra Khzmalyan: Armenia is comfortable to Russian tourist
The Armenian delegation to the US followed the advice of President TrumpThe Armenian delegation to the US followed the advice of President Trump
Outflow of population and passivity of the Diaspora pushes property prices downOutflow of population and passivity of the Diaspora pushes property prices down
Finombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and  non-creditworthy consumersFinombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and non-creditworthy consumers
Vahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distancesVahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distances
Gagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directionsGagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directions
Vitaly Nesis: Armenia is very promising from the geological point of viewVitaly Nesis: Armenia is very promising from the geological point of view
The market of OSAGO goes into virtual spaceThe market of OSAGO goes into virtual space
Ishkhan Mkhitaryan: ArCa and Mir complete the technological part of the project of interaction, business for banksIshkhan Mkhitaryan: ArCa and Mir complete the technological part of the project of interaction, business for banks
The second stage of implementation of the program for prolonging the lifetime of the power unit N2 of the Armenian NPP beginsThe second stage of implementation of the program for prolonging the lifetime of the power unit N2 of the Armenian NPP begins
Successful business is forging for years - to the jubilee of IC Successful business is forging for years - to the jubilee of IC "INGO Armenia"
Armen Shahnazaryan: The double increase in the insurance portfolio of EIAA ICJSC by the end of 2018 is quite feasibleArmen Shahnazaryan: The double increase in the insurance portfolio of EIAA ICJSC by the end of 2018 is quite feasible
Expert: Real estate market of Armenia started demonstrating weak  signs of recovery in I half-yearExpert: Real estate market of Armenia started demonstrating weak signs of recovery in I half-year
Amulsar: Ecology and РeopleAmulsar: Ecology and Рeople
GeoProMining - ten years of work for the benefit of the country, at the forefront of gold miningGeoProMining - ten years of work for the benefit of the country, at the forefront of gold mining
SolarOn will become a catalyst for the development of solar energy in  ArmeniaSolarOn will become a catalyst for the development of solar energy in Armenia

Search by date

Government Bonds

 

ISIN AMGB1029A250
Auction ID AMGB1029A250A
Date 12.05.2017
Issue date 29.10.2015
Issue volume (AMD) 50 000 000 000
Maturity date 29.10.2025
Coupon year yield 11.00%
Auction volume (AMD) 1000 000 000 - 2.000 000 000
Auction date 12.05.2017
DLS
Total amount (AMD) 1 000 000 000
Amount of the total bids (AMD) 787 200 000
Amount of the total accepted bids (AMD) 787 200 000
Cut of yield (%) 10,6447
Weighted avrage yield (%) 10,6447
Auction max  yield (%) 10,6447
Auction min  yield (%) 10,6447
Number of participants 5
ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

Commented
Investment forum Investment forum "Energy Week 2018" to be held in Armenia
Expert: It is necessary to start implementing the program for the  construction of a new nuclear unitExpert: It is necessary to start implementing the program for the  construction of a new nuclear unit
The updated feasibility study of construction project of electricity transmission line Armenia- Georgia will be ready by the end of the year - the Ministry of EnergyThe updated feasibility study of construction project of electricity transmission line Armenia- Georgia will be ready by the end of the year - the Ministry of Energy
Eurasian Development Bank wishes to expand its activities in ArmeniaEurasian Development Bank wishes to expand its activities in Armenia
FRV: Armenia`s growing desire to increase renewable energy sources is  a decisive factorFRV: Armenia`s growing desire to increase renewable energy sources is a decisive factor
Suren Papikyan: It`s safe now to do business in Armenia, assures  Armenian MinisterSuren Papikyan: It`s safe now to do business in Armenia, assures  Armenian Minister
Armenian state debt started reducing up to $6.7 bln to June 1 2018Armenian state debt started reducing up to $6.7 bln to June 1 2018
Minister: Implementation of program on liberalization of the electric  power complex of Armenia will be completed within the next two yearsMinister: Implementation of program on liberalization of the electric  power complex of Armenia will be completed within the next two years
Nikol Pashinyan: In a number of cases after paying fines and  penalties the borrowers will be allowed to take new loan Nikol Pashinyan: In a number of cases after paying fines and  penalties the borrowers will be allowed to take new loan 
German bank KFW urges Armenia to build power line in the direction to  GeorgiaGerman bank KFW urges Armenia to build power line in the direction to  Georgia
Anna Chobanyan-one of most likely candidates for new Head of General  Department of Civil Aviation Anna Chobanyan-one of most likely candidates for new Head of General  Department of Civil Aviation 
IFAD confirms its readiness to develop and implement new joint programs with Armenia`s Agriculture MinistryIFAD confirms its readiness to develop and implement new joint programs with Armenia`s Agriculture Ministry
Rosselkhoznadzor asks not politicize the issue of deliveries of tomatoes from Armenia to RussiaRosselkhoznadzor asks not politicize the issue of deliveries of tomatoes from Armenia to Russia
Armenian nuclear power station has a resource for work for another 30  yearsArmenian nuclear power station has a resource for work for another 30 years
Premier: Construction of a new nuclear power plant in Armenia is one of the priorities of the new government of the countryPremier: Construction of a new nuclear power plant in Armenia is one of the priorities of the new government of the country
In Armenia, an online service has been activated that allows  calculating the cost of customs clearance of a carIn Armenia, an online service has been activated that allows calculating the cost of customs clearance of a car
Gyumri programmers won on hekaton Gyumri programmers won on hekaton "Innovative ideas for tourism development"
Armenian Lori opens a large international ski resortArmenian Lori opens a large international ski resort
A number of light and alcohol industry enterprises of Armenia will be  provided with state supportA number of light and alcohol industry enterprises of Armenia will be provided with state support
Expert: The attitude of Armenian public to the nuclear power industry is demonstrated not by the promiseExpert: The attitude of Armenian public to the nuclear power industry is demonstrated not by the promise
Expert: The biggest gap in procurement legislation is the lack of an institution for accountability for its violationExpert: The biggest gap in procurement legislation is the lack of an institution for accountability for its violation
Maxim Sokolov: Russian Federation remains the main trade partner of  ArmeniaMaxim Sokolov: Russian Federation remains the main trade partner of Armenia
Russian MP: Restoring railway communication between Armenia and  Russia through Abkhazia and Georgia meets the economic interests of  Yerevan and MoscowRussian MP: Restoring railway communication between Armenia and Russia through Abkhazia and Georgia meets the economic interests of Yerevan and Moscow
Amulsar program was awarded a certificate of compliance with ICMC standards in pre-production cycleAmulsar program was awarded a certificate of compliance with ICMC standards in pre-production cycle
Expert: Subsidizing is the worst model of softening the results of price increaseExpert: Subsidizing is the worst model of softening the results of price increase
Fitch improved outlook on Yerevan`s rating from Fitch improved outlook on Yerevan`s rating from "Stable" to "Positive"
Expert: Energy component of the Armenia-EU agreement conceals big threats for ArmeniaExpert: Energy component of the Armenia-EU agreement conceals big threats for Armenia