Exploring Armenia’s Insurance Industry

categorytitle / Research Update .

time : 09:16
Date : Wed May 18, 2022
news code : 5317

The insurance penetration rate and density as the major indicators of the development are still in their early stages in Armenia’s insurance industry. Having the insurance penetration rate of 0.72% and insurance density of 30.83%, Armenia’s insurance industry performed far below the global average in 2020. This shows that in terms of the insurance development, this country can be roughly considered as underdeveloped country.

Armenia’s insurance industry as a developing country has the high potential of growth. Given the suitable condition of the insurance market for the entrance of similar countries with similar culture and economy like Iran, Armenia can be considered as one of the attractive regions in the emerging markets to be considered for investment.

In view of this, Insurance Markets Studies Desk of IRC in its fourth report of the insurance industry of the world has dealt with the exploration of the Armenian insurance market and has published its results in a report titled “Armenia; Global Insurance Markets Studies Series”.

Prepared by Mojtaba Khosravi, Market Development and Customer Affairs Manager of Parsian Insurance Co. and Zahra Bardal, Director of the Insurance Markets Studies Desk of IRC, the report attempts to explore and study the potentiality of the Armenia’s insurance industry for the entrance of Iran insurance market.

According to the study results, during the fiscal year 2020, there have been 7 non-life insurance companies active in Armenia that were all privately owned and managed. It must be emphasized that the Armenia’s insurance market now only offers nonlife insurance products and life sector does not merely exist in this country.

Examining the Armenia’s market and the premiums written, it is revealed that in 2019, the third party liability (TPL) insurance had the lion share of the market (48.13%). It must be noted that due to the compulsory nature of the TPL insurance based on the law passed by the Central Bank of Armenia, such a high share is foreseeable in future. Next to TPL insurance is health insurance with 23.23% share of the total premiums written in Armenia’s market.

The insurance industry institutions of Armenia include regulatory authority, educational and research institutes, and Physical Damage Fund. In 2007, the new laws of insurance were passed by Armenia’s parliament and it is considered as the highest regulatory official document for any insurance activity in this country. Based on this, Central Bank of Armenia is considered as the insurance regulatory and legislative body of the country.

Those interested to access and download the Persian full text of the aforementioned research report, please take a visit to https://www.irc.ac.ir/fa-IR/Irc/4946/Articles/view/14643/1573.

Average : 0 | Submitted : 0