Global insurer ALLIANZ probes Armenian market's business potential

A delegation of the global insurer ALLIANZ led by Antoine ISSA, Regional Director for Middle East and South Africa has recently met the Armenian Minister of finance Vardan ARAMYAN, to assess the business prospects on the local market.

According to the Armenian Ministry of finance press service, "one of the goals of the ALLIANZ Group's visit to Armenia was to observe the possibilities and prospects the country has in order to operate there. Minister Vardan ARAMYAN introduced the current macroeconomic situation and the economic growth trends of the Republic of Armenia for the upcoming years. The sides also touched upon the current situation of Armenia's insurance sector and the recent reforms in it. At the end of the meeting the parties expressed mutual readiness for further cooperation. The RA Minister of Finance Vardan ARAMYAN noted that the Armenian side is ready to discuss concrete proposals for cooperation".

ArmInfo experts say that the reason of the ALLIANZ visit may be the Group's interest in establishing the first life insurer in the country. According to the local legislation, as composite insurers are not allowed to conduct insurance business, Armenian non-life insurers should set up a separate specialised company for life insurance. "However, the level of capitalization of existing companies and the total absence of a life insurance culture in the country hinders the formation of this market segment. Large world companies, such as ALLIANZ, could become pioneers in this matter in Armenia".

At the end of 2016, the Armenian insurance market totaled about AMD 33 billion (about EUR 64 million). The aggregated GWP portfolio was made up of 11% - property insurance, 55% - MTPL, 17% - health insurance, 6% - MoD, 10% - other non-life insurance classes.

Regarding the active players in the market, on December 31, 2016, six insurance companies reported underwriting activity (only in the non-life segment), of which, three of them are subsidiaries of some Russian groups: ROSGOSSTRAKH, INGOSSTRAKH and RESO.

According to the reported volume of GWP at the end of the previous year, the largest insurers on the local market were ROSGOSSTRAKH Armenia (29.3% market share), INGO Armenia (27.1%) and NAIRI Insurance (17.1%) followed by SIL Insurance (11.9%), RESO (9.4%) and ARMENIA Insurance (5.2%).

Related articles

STATISTICS: ARMENIA, 1H2016: MTPL insurance events below AMD 100,000 may be settled based on the mutual consent of drivers

In the first six months of 2016, the six active insurance companies of the Armenian market totaled AMD 16.1 billion in premium (note: based on the Central Banks financial standards), while based onIFRS standards local market totaled only AMD 15.8 billion. At the same time the indemnities paid by local insurers reached AMD 6.2 billion, according to ArmInfo News Agency.

2016-09-29

Armenia: Changes in the process of concluding MTPL contract

Starting September 1st, 2016, car owners will no longer be required to declare the names of other drivers they allow to drive the vehicles upon buying MTPL insurance, recently said the Bureau of Motor Insurers of Armenia(source: ArmInfo).

2016-08-25

ARMENIA: Insurers' consolidated net profit 74% up y-o-y

Net profit achieved by the six insurance companies operating on the Armenian market amounted to AMD 2.6 billion (EUR 4.9 million) in 1H2016, up by 74% y-o-y in local currency, according to ArmInfo Rating Agency. GWP grew by 4.2% to AMD 15.8 billion (EUR 29.8 million), while claims paid rose by 0.7% to AMD 6.2 billion (EUR 11.7 million).

2016-08-18

Armenia, 1Q2016: GWP growth by 6.7%, while claims decreased by 1.9%

In 1Q2016, GWP by Armenian insurance companies increased by 6.7%, to AMD 9.5 billion compared to the similar period of 2015. At the same time, in the analyzing period the volume of claims paid by the insurers dropped by 1.9% and totaled AMD 3.2 billion, according to the ArmInfo Agency based on the companies' reporting in accordance to the IFRS standards.

2016-06-30

ARMENIA, 3Q2015: GWP up by 0.13%

In the first nine months of 2015, the six active insurance companies of the Armenian market underwrote AMD 22.5 billion gross premiums, up by 0.13% y-o-y. Compared with the first quarter of 2015, GWP in the third quarter were down by 23.5%, according to АРКА news agency. At the same time the indemnities paid by local insurers totaled AMD 9.5 billion.

2016-01-28

ON THE MOVE

TOP EVENT

61st "Rendez-Vous de Septembre" ends today in Monte Carlo: review

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers ends today in Monte Carlo. The Nat Cat insurance protection gap, as well as the global insurance market readiness to deal with the increasing complexity of the cyber risks were among the most debated topics.

14.09.2017

photodune-3834701-laughing-girl-xs

MONTE CARLO: Live news from the "Rendez-Vous de Septembre"

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers has started yesterday in Monte Carlo. XPRIMM publications on the CEE, SEE and CIS insurance markets are available at the XPRIMM stand in Fairmont Hotel as well as at the other event's venues.

10.09.2017

See all