Tuesday, April 13 2010 14:29
Head of INGO ARMENIA: No monopolies will be in OSAGO segment
ArmInfo. Competition in the segment of the first compulsory insurance line in Armenia - OSAGO car insurance, will be tough but monopolies are ruled out, Director of INGO ARMENIA Insurance Company Levon Altunyan told ArmInfo.
OSAGO will be introduced in Armenia in 2011. The Parliament of Armenia passed a relevant law on March 18 2010. Levon Altunyan forecasts that the share of an insurer in the car insurance segment will not exceed 25%. He said that INGO ARMENIA is expected to keep the portfolio diversified and the share of OSAGO in it will not exceed 20%. L. Altunyan also forecasts that the insurance market will attain a new quality after introduction of OSAGO. "When money occur in the market, the self-rating of insurers and the self-sentiment in the market will change. Companies will no longer pursue certainly unprofitable insurance just to attract clients," he said.
The OSAGO market in Armenia is preliminary estimated at $35 million (300,000 cars and conditional premium of 30,000 drams). It is a juicy contract for insurers. Although the companies with Russian capital (INGO ARMENIA, Rosgosstrakh-Armenia and Reso) are strengthening in the market, the other companies are just preparing to strengthen their positions. Experts have concerns about development of OSAGO segment. They think that it may be consolidated in the hands of 2-3 insurance companies.