HEAD OF INGO ARMENIA: NO MONOPOLIES WILL BE IN OSAGO SEGMENT

Arminfo
2010-04-13 13:51:00

ArmInfo. Competition in the segment of the first compulsory insurance
line in Armenia – OSAGO car insurance, will be tough but monopolies are
ruled out, Director of INGO ARMENIA Insurance Company Levon Altunyan
told ArmInfo.

OSAGO will be introduced in Armenia in 2011. The Parliament of Armenia
passed a relevant law on March 18 2010. Levon Altunyan forecasts that
the share of an insurer in the car insurance segment will not exceed
25%. He said that INGO ARMENIA is expected to keep the portfolio
diversified and the share of OSAGO in it will not exceed 20%. L.

Altunyan also forecasts that the insurance market will attain a new
quality after introduction of OSAGO. "When money occur in the market,
the self-rating of insurers and the self-sentiment in the market
will change. Companies will no longer pursue certainly unprofitable
insurance just to attract clients," he said.

The OSAGO market in Armenia is preliminary estimated at $35 million
(300,000 cars and conditional premium of 30,000 drams). It is a juicy
contract for insurers. Although the companies with Russian capital
(INGO ARMENIA, Rosgosstrakh-Armenia and Reso) are strengthening in
the market, the other companies are just preparing to strengthen their
positions. Experts have concerns about development of OSAGO segment.

They think that it may be consolidated in the hands of 2-3 insurance
companies.

From: Emil Lazarian | Ararat NewsPress