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SPLENDORS AND MISERIES OF ARMENIAN INSURANCE BUSINESS
By Samvel Avagyan...
news.am
Nov 25 2010
Armenia
A new business is developing in Armenia, namely, compulsory car
insurance agent. Car insurance offices have been opened in nearly
every part of Yerevan - in supermarkets, bank branches, newsstands,
barber's shops, gas-filling stations, to say nothing of numerous other
places. Public lavatories and night clubs are perhaps the only places
where car insurance has not yet been offered. But it is a matter of
time. Shops and stalls are perhaps the only rivals to the ubiquitous
insurance offices.
Thousands of Armenian citizens are engaged in insurance business. Mind
and vocation have little to do with being a car insurance agent. It
should be noted, however, that some of the insurance agents have been
certified. They had great expectations from insurance business, but
it is they who are actually sustaining the greatest losses. Agents
normally get 10% of insurance premiums - 2,000 to 2,500 AMD (U.S.
$6-7). They have to pay the monthly rent, 100,000 AMD (U.S. $275-280).
To get the lowest profit they have to insure at least 50 cars a month.
However, with severe competition, many of them sustain losses.
Some networks practice incentives. Specifically, insurance agents
working at VivaCell offices get free mobiles.
Talking to NEWS.am insurance agents said that so many networks render
their work senseless. They say they actually wasted time on training
courses.
October proved a good month for insurance agents. They hope for the
better this December, without, however, considering this business a
long-term prospect. "Only insurance companies and large networks are
in the clear," says one of the agents, Armen.
Insurance companies are fiercely competing, which inspires hope
the sector will not be monopolized. Insurance companies launched a
large-scale advertising campaign, the second largest-scale campaign
after that of mobile services. However, the companies' marketing policy
is far from being flexible. For example, the advertising campaign
launched by the Rosgosstrakh-Armenia agency - the largest-scale
campaign among the insurance companies - is like trying to crush a
fly upon the wheel.
From: A. Papazian
By Samvel Avagyan...
news.am
Nov 25 2010
Armenia
A new business is developing in Armenia, namely, compulsory car
insurance agent. Car insurance offices have been opened in nearly
every part of Yerevan - in supermarkets, bank branches, newsstands,
barber's shops, gas-filling stations, to say nothing of numerous other
places. Public lavatories and night clubs are perhaps the only places
where car insurance has not yet been offered. But it is a matter of
time. Shops and stalls are perhaps the only rivals to the ubiquitous
insurance offices.
Thousands of Armenian citizens are engaged in insurance business. Mind
and vocation have little to do with being a car insurance agent. It
should be noted, however, that some of the insurance agents have been
certified. They had great expectations from insurance business, but
it is they who are actually sustaining the greatest losses. Agents
normally get 10% of insurance premiums - 2,000 to 2,500 AMD (U.S.
$6-7). They have to pay the monthly rent, 100,000 AMD (U.S. $275-280).
To get the lowest profit they have to insure at least 50 cars a month.
However, with severe competition, many of them sustain losses.
Some networks practice incentives. Specifically, insurance agents
working at VivaCell offices get free mobiles.
Talking to NEWS.am insurance agents said that so many networks render
their work senseless. They say they actually wasted time on training
courses.
October proved a good month for insurance agents. They hope for the
better this December, without, however, considering this business a
long-term prospect. "Only insurance companies and large networks are
in the clear," says one of the agents, Armen.
Insurance companies are fiercely competing, which inspires hope
the sector will not be monopolized. Insurance companies launched a
large-scale advertising campaign, the second largest-scale campaign
after that of mobile services. However, the companies' marketing policy
is far from being flexible. For example, the advertising campaign
launched by the Rosgosstrakh-Armenia agency - the largest-scale
campaign among the insurance companies - is like trying to crush a
fly upon the wheel.
From: A. Papazian