Wednesday, April 28 2010 18:22
Armenian insurance market will have to be open before foreign insurance community
ArmInfo. Sooner or later the insurance market of Armenia will have to be open before the foreign insurance community, Doctor of Science, Economics, Professor Edvard Sandoyan said in his interview with ArmInfo.
According to the expert, one should not expect the local insurers to accumulate the necessary reserves in 50-100 years. "Armenia is a country with small economy, therefore, there will be no big capital in the insurance sector",- he said. In this context, Sandoyan considers it necessary to admit the activity of leading foreign companies in the local insurance market. Moreover, one should display a competent approach to this issue. In particular, the expert stressed the necessity of joint regulation and supervision systems, memorandums with mega-regulators of the relevant countries, joint regulation institutions, selection of first-class, leading insurance companies from the "reliable" countries, which have been highly rated by the professional rating agencies, auditors' conclusions by well-known audit companies, etc.
Speaking of introduction of the Motor Third-Party Liability Insurance (MTPL) in Armenia, Sandoyan said that without solving the related regulatory problems, for instance, without ensuring competition in the insurance market, the introduction of MTPL will turn into a horrible joke – all these money flows will be re-directed to one or two oligarchs.
To note, Motor Third-Party Liability Insurance will be introduced in Armenia in 2011. The relevant bill was adopted by the Armenian Parliament on 18 March 2010.
Armenian Banks: About HSBC, Ardshinbank and Conducting Business in the New Environment of Sanction Restrictions
The sale of HSBC Bank Armenia to Ardshinbank to be completed on November 29, 2024
Armenian government approves 2024-2040 demographic strategy 
Armenia`s economy and state competing for sooner collapse - ex-official