CB’S POWERS OF ARMENIAN FINANCIAL MARKET MEGAREGULATOR WILL ALLOW IT SECURING OPENNESS AND TRANSPARENCY OF COUNTRY’S INSURANCE MARKET: LLOYD’S REPS.

Yerevan, June 14. ArmInfo. The Central Bank’s powers of the Armenian
financial market megaregulator will allow it securing openness
and transparency of the country’s insurance market. Darren Warkcup
Representative of Heritage Managing Agency Ltd. Syndicate 1200, London
Corporation Lloyd’s, and Brian Salmanpour, Representative of the
Council of London Gate Group, told ArmInfo. The representatives have
recently visited Armenia for the first time, where Armenian CB Council
member, Vache Gabrielyan, informed them of the supervision mechanisms.

D. Warkcup believes important that the powers of megaregulator were
laid on the Central Bank as the chief banker tries to transfer the
insurance market to the open field i.e. to secure transparency of
this business for potential clients. As regards the CB’s aspiration to
bring the law on insurance in the line with international standards,
it will help the market develop and attract more foreign companies to
Armenia. This, in its turn, will develop competition and create more
attractive conditions for clients. In fact, only reliable insurance
companies will maintain their positions in the market. B. Salmanpour
touched upon the prospects of introduction of compulsory insurance
in Armenia stating that it will play an important role both for
the economy on the whole and for development of insurance market,
in particular. It is first of all aimed at protection of consumers’
interests as it will allow the market become well- organized, and
the public – more aware of their demands, he said.

In conclusion, D. Warkcup stated that the stable economic growth
in Armenia will allow insurance companies extending their activity,
specifically, capitalization is in question. Due to it, new services
will be provided to clients, the competition will be increased. In
fact, only specialized stable companies will remain in the market,
others will amalgamate. Of course, the share of reinsurance of
Armenian companies in the Lloyd’s market is so insignificant that it
is not worth mentioning. The annual turnover of Lloyd’s Corporation
considerably exceeds the budget of Armenia. Nevertheless, the
corporation’s underwriter noticed Armenia and other CIS countries
which were avoided by other foreign reinsurers, D. Warkcup said.