EIAA`s insurance portfolio reached 4.534 billion AMD by 2018

ArmInfo. Following the results of 2017, the insurance portfolio of SJSC "Export Insurance Agency of Armenia" totaled 4.534 billion drams, while the final figure was planned at 3 billion drams (in 2016 the figure reached 2.185 billion drams, and in 2015 it was 0, 39 billion).  Armen Shahnazaryan, Executive Director of the EIAA, told a press conference on March 22 when answering the question of ArmInfo. Previously, the government of Armenia in its program of activities for 2017-2022. according to the results of 2018, it fixed expectations of growth of insured transactions to almost 4.5 billion drams.

According to Shahnazaryan, in the past year, while maintaining the dynamics of growth in 2016, EIAA showed significant growth in all indicators. So, in 2017, 329 insurance policies were concluded, instead of 116 in 2016 and 25 in 2015. For the entire 2016 year, the use of EIAA services received 113 application requests, 47 of which were satisfied. In 2017, EIAA has received 99 applications, 64 positive decisions have been made. The dynamics of insurance premiums has also been recorded. If for the whole of 2016 their volume amounted to 12.290 million drams, then by the results of 2017 the indicator reached the level of 39 million drams. As of March 1, 2018, according to the results of 60 insurance policy prisoners, the Agency's insurance portfolio already amounted to 656 million drams (an increase of 2.76 times compared to the same period of 2017), insurance premiums reached 8.8 million drams growth of 5.5 times).

According to the results of 2017, as the head of the EIAA noted, the exporters of alcoholic beverages used the Agency's services the most - 42% of the total portfolio or 1.891 bln drams (according to the results of 2016 the insured portfolio amounted to 1.153 bln). They are followed by the export of processed food products - 25% or 1.117 billion drams out of the total insurance portfolio (according to the results of 2016, insurance policies for the amount of 337.1 million drams were concluded).  As before, Russia remains the main export market for Armenia: in 2017, insurance policies totaling 3.356 billion drams or about 74% of the total insurance portfolio were issued to exporters in the direction of the Russian market (in 2016, 1.733 billion drams or 79%). Again in August this year, the lion's share of exports is aimed at the markets of the Russian Federation - 66% of the total portfolio or 1.714 billion drams. It is followed by the US with 18% or 816 million drams of insured transactions, the UAE - 252 million drams or 6%, 110 million drams from the total insurance portfolio or 2% - other countries.

As Shahnazaryan pointed out, providing insurance policy from EIAA, economic entities are much easier to obtain preferential bank lending and use factoring services. During the year 2017, it was possible to expand cooperation with the banking sector. So far, the Agency has been cooperating with 10 banks (in 2016 the Agency cooperated with 6 banks): Armswissbank, ACBA-Credit Agricole Bank, Armbusinessbank, Ameriabank, Araratbank, Armeconombank, Kovers Bank, Unibank, Evokabank, UCC "DICA" (ex CJSC '' SME Investments''). The Agency also cooperates with the National Center for the Development of Small and Medium Enterprises of Armenia and the Chamber of Commerce and Industry of Yerevan.

In 2017, CJSC "Export Insurance Agency of Armenia" expanded the scope of international cooperation. So, in the past year, EIAA signed a Memorandum of Cooperation with three member states of the Eurasian Economic Union (EAEU) - Russia, Kazakhstan and Belarus. This, Shahnazaryan said, will provide an opportunity not only to receive information on counterparties of Armenian exporters, but also creates guarantees of insurance compensation. The Kyrgyz side does not have a similar agreement due to the fact that Bishkek has not yet formed the relevant structure. As for cooperation with European partners, as the head of the agency pointed out, Armenia joined the Berne Union (the official name of the International Union of Credit and Investment Insurers.) Within which it is possible to use the Union database. In addition, there are commercial organizations, which services are used by EIAA.

At the moment, the Agency is also taking steps to develop relations with the Islamic Republic of Iran. The Iranian side proposes to carry out reinsurance activities against companies from Iran. Thus, the EIAA awaits a response from the country's financial authorities-how appropriate is the granting of the appropriate permit and whether this right is granted to the RA legislation.

At the same time, EIAA considered the diversification of existing instruments. So, in addition to export credit insurance and pre-export financing insurance, the Agency is working on possible insurance of export-oriented enterprises in the matter of insurance of imported equipment. Also, according to the received applications from business structures, EIAA is considering about the mechanisms of insurance of tourist activity.