Friday, January 18 2019 20:29

ArmInfo. In the OSAGO system, modernization of approaches with the subsequent liberalization of the market will not lead to problems and a global increase in tariffs.   On January 18, Tigran Keyan, Chairman of the Association of Motor  Insurers of Armenia, member of the Council of the Bureau of Motor  Insurers of Armenia, said during a press conference."Global problems  should not be expected. 

There is a need for proper classification, implying the following:  drivers with higher risk will pay more than drivers with low risk,"  he explained. As an example, T. Keyan noted taxi drivers, who are  more prone to accidents in Yerevan due to congestion of roads than in  the regions, and therefore they will have to pay more than regional  taxi drivers.Under the changes, the expert meant the introduction of  minimum and maximum thresholds for insurance premiums, with  subsequent liberalization of the market, with which the current  insurance companies of Armenia agree."For 7 years, a uniform tariff  system has been operating in the insurance market of Armenia for  OSAGO. 

Today, it has become necessary to make changes and modernize existing  approaches, which will create favorable conditions for insurers and  drivers," he said.Innovations, which says T. Kreyan, exclude uniform  tariffs. "Insurance companies will have the opportunity to  independently set insurance premiums based on the classification of  vehicles. And the maximum and minimum thresholds in turn will not  allow the insurance company to work at a loss. We want to resolve the  issue of obtaining excess profits by insurance companies. Everything  must be justified. No economic entity should not have excess profits.  By providing services, market participants must ensure their profit  through other types of insurance. CTP is a mandatory type of  insurance I, not an economic indicator, and therefore it is  unacceptable to associate it with profit ", - said the chairman of  the COO" Friend of the driver ".Without these changes in the  insurance market, the unfair competition that is observed between  insurers through their insurance agents will continue to flourish. 

Namely, according to him, there were ICs that paid commissions of  10-35% to their insurance agents, which is contrary to the norms of  market relations.To name the dates when the approaches will be  modernized, T. Keyan found it difficult, since this issue is still  under discussion. "We cannot make such a decision on our own. It will  be possible to implement this initiative only after coordination with  all participants of the insurance market and approval of the  Regulator," he explained.According to the Bureau of Motor Insurers of  Armenia, by January 1, 2019 there are 508,297 units of vehicles with  the current OSAGO contract. A year earlier there were 497838, an  increase of 2.1%. The number of CTP contracts reached by January 1,  2019 reached 902365 (annual growth by 11.4%), according to which the  volume of insurance premiums amounted to 19.6 billion drams (annual  growth by 5.5%). From this number of contracts 1.9% or 17550 were  concluded electronically. 

OSAGO unprofitableness in 2018 was 72.5%, against 65% a year earlier.  According to the ranking of insurance companies in Armenia, prepared  by ArmInfo IC, as of October 1, 2018, there are 6 insurance companies  operating in Armenia and there are 2,888 insurance agents. The number  of the latter per year (October 1, 2018 to October 1, 2017) decreased  by 3,511. In total insurance premiums, the share of CTP reduced by 1  October 2018 to 46.97%, against 56.08% as of October 1, 2017. The  volume of insurance premiums on compulsory motor TPL insurance  increased by an annualized basis by 4.1% to 14.3 billion drams, with  an increase in refunds by 21.6% to9.7 billion drams, against the  growth of these indicators a year earlier, by 4.5% and 33.3%,  respectively.