CB FORECASTS: PROSPECT OF DEVELOPMENT OF ARMENIA’S INSURANCE SYSTEM ENVISAGES AVERAGE ANNUAL GROWTH OF INSURANCE PREMIUMS BY 10,6% WITHIN 2007-2009
ArmInfo
2007-06-14 21:06:00
By RA CB forecasts, the prospect of development of Armenia’s insurance
system envisages average annual growth of insurance premiums by 10,55%
within 2007-2009.
According to RA CB forecasts, presented in the document "Prospects
of development of insurance system for 2007-2009", reduction of
insurance premiums by 0,3% is expected during 2007, while growth of
premiums by 15,4% is predicted during 2008 and by 16,5% in 2009. The
growth of insurance premiums during 2006 made up 61,8% or 4.8 bln
drams. Growth by 32,7% per insurance money is expected in 2007-2009
and by 32,2% during the current year. The compensations, paid by
Armenia’s insurance companies within 2006, grew by 25,6% to 607.3
mln drams. At that, the insurance money per aviation risks have not
been taken into account. As for the sum insured, the megaregulator
forecasts their average annual growth in 2007-2009 by 7,6%, while
their growth in 2006 made up 36,8%. Growth of insurance money by 7.1%
is expected within the current year, by 7.5% during 2008 and by 8.1%,
on average, during 2009. Growth of money aimed at reinsurance of
risks in an average annual section within 2007-2009 will make up 3,8%.
By forecasts of RA CB, the size of assets of insurance companies in
2007 will grow by 24,3%, in 2008 – by 14,1%, in 2009 – by 18,3%. The
liabilities in 2007-2009 will grow by 8,43% per year, and the
own capital – by 24,15%. RA CB notes that the plans of strategic
development for 2007-2009, presented by 12 insurance companies,
as well as the reporting indicators for 2005 have been used when
drawing up the forecasts of prospects of development of the country’s
insurance market.
According to the Ranking of the leading insurance companies of Armenia,
prepared by ArmInfo, 11 leading insurance companies of Armenia gathered
insurance premiums to 1.4 bln drams ($3.8 mln) over the first quarter,
2007, that exceeds the indicator of the similar period, 2006, by
69,4%. The total volume of compensations, upon results of 1Q, 2007,
made up 168,7 mln drams ($464,000), that twice exceeds the indicator
of the similar period, 2006.
The total assets for 1Q, 2007, made up $19.5 mln, while the total
size of the own capital for the same period made up $13.1 mln.