CENTRAL BANK CLEANS INSURANCE FIELD

Panorama.am
17:16 05/02/2007

‘The strategy of the Central Bank is that the market should be
cleaned out of the companies, which violate the requirements of
the legislation’, Tigran Sargsyan, Chairman of RA Central Bank told
during the press conference today. To remind, during the last year
many companies operating in this market, were deprived of a license,
for not ensuring the established minimum authorized capital. At that
moment their capital made up 200 million drams, but today, according
to the government decision, the authorized capital should total 350
million AMD. Besides, the market participants had violated the norms
on solvency and realization of financial funds.

According to T. Sargsyan, in December 2006 the Government approved
the draft "On insurance". It has been already submitted to the
consideration of the National Assembly.

CB intends to introduce European standards in the insurance sphere
in order favorable conditions were created for the access of foreign
leading companies.

At the moment there are no large international companies in our market.

Touching upon the fact that a number of companies renounced life
insurance, T. Sargsyan noted: "We have gaps in the law "On insurance",
its several norms do not meet the international standards". As a
result, when cooperating with foreign companies native insurers face
several obstacles.

It should be noted that during the last half year our several companies
renounced their licenses for life insurance, motivating that such
insurance is not profitable.