WORKING OUT OF KINDS OF COMPULSORY INSURANCE TO START FROM NEXT YEAR
IN ARMENIA

YEREVAN, August 20 (Noyan Tapan). From 2005 working out of the kinds
of compulsory insurance will start in RA Ministry of Finance and
Economy. At present 19 insurance companies acting in the sphere carry
out voluntary insurance of property, luggage, accidents, aviation
risks, as well as medical insurance.

Davit Avetisian, RA Deputy Minister of Finance and Economy, told Noyan
Tapan that introducion of the system of compulsory insurance will
contribute to further development of the sphere and growth of volumes
of foreign investments. In connection with the latter it was mentioned
that a number of American, Russian, German and French companies are
interested in the Armenian insurance market. The Deputy Minister aslo
mentioned that growth may be registered in the sphere even only under
conditions of voluntary insurance, some companies work with about 50%
profitableness. According to D.Avetisian, 3 years later the Armenian
insurance companies will correspond to European standards with the
volumes of their capital. According to the new law “On Insurance”
adopted in early June by the NA, the minimum amount of capital of
companies has already increased.