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By its insurance market size Armenia outstrips Central Asian countries
and lags behind its neighbors
arminfo
Friday, December 28, 23:17
By its insurance market size, Armenia outstrips the countries of
Central Asia and at the same time lags behind its neighbors. According
to the insurance report of Media XPRIMM (Romania), which refers to
ArmInfo, against the background of its post-Soviet neighbors,
particularly, Georgia and Azerbaijan, Armenia's insurance market seems
modest enough.
In particular, the Azerbaijani insurance market is almost 4 times as
large as the Armenian one, and the Georgian insurance market is 2.5
times as large as the Armenian one. At the same time, it should be
noted that both neighbors outstrip Armenia by the number of their
population. To note, Azerbaijan has several compulsory types of
insurance (including motor third-party liability insurance), while
Armenia has only two such insurance types. Unlike its neighbors,
Georgia has no compulsory insurance, though the Georgian insurance
community made unsuccessful attempts in this direction several years
ago. Instead, due to the radical insurance reforms launched in 2006,
today Georgia has dynamically developing health insurance, which
secured 65% of the total insurance premiums in the first half of 2012.
As a result of the reforms, the standard health insurance policy has
become more affordable in price. In addition, the average insurance
package includes treatment of oncological diseases and does not rule
out treatment of the diseases revealed.
Drawing parallels between the insurance markets of Armenia and other
countries of the post-Soviet space, it is necessary to point out that
in Armenia the compulsory types of insurance have a prevailing
position in the insurers' portfolios (85%), which is quite the
opposite picture of all the other post-Soviet countries practicing
compulsory types alongside with the voluntary types of insurance.
According to Media XPRIMM, in both Georgia and Azerbaijan, as well as
in a number of Central Asian countries, insurance companies also
practice life insurance, which is missing in Armenia.
Just to compare, in Jan-June 2012 the capacity of Armenia's insurance
market made up 45mln EUR, against 30mln EUR in Turkmenistan and
Moldova, 9.5mln EUR in Tajikistan and just 1.54mln EUR in Kyrgyzstan.
In the "second rate" post-Soviet republics the numbers of insurance
companies are much different: in Turkmenistan there is just one
company, in Tajikistan 14 (with two domineering companies), in Moldova
as many as 24.
In Central Asia only Uzbekistan's insurance market is bigger than
Armenia's. In Jan-June 2012 its capacity made up 57.8mln EUR. In that
country, just like in all of Central Asia, voluntary insurance is
prevalent, with compulsory insurance making up just 1/3 of the local
insurers' premiums.
Media XPRIMM is ArmInfo's partner in insurance analysis. For 10 years
already it has provided professional financial analysis and reviews of
markets in Central and Eastern Europe, Russia and the CIS.
and lags behind its neighbors
arminfo
Friday, December 28, 23:17
By its insurance market size, Armenia outstrips the countries of
Central Asia and at the same time lags behind its neighbors. According
to the insurance report of Media XPRIMM (Romania), which refers to
ArmInfo, against the background of its post-Soviet neighbors,
particularly, Georgia and Azerbaijan, Armenia's insurance market seems
modest enough.
In particular, the Azerbaijani insurance market is almost 4 times as
large as the Armenian one, and the Georgian insurance market is 2.5
times as large as the Armenian one. At the same time, it should be
noted that both neighbors outstrip Armenia by the number of their
population. To note, Azerbaijan has several compulsory types of
insurance (including motor third-party liability insurance), while
Armenia has only two such insurance types. Unlike its neighbors,
Georgia has no compulsory insurance, though the Georgian insurance
community made unsuccessful attempts in this direction several years
ago. Instead, due to the radical insurance reforms launched in 2006,
today Georgia has dynamically developing health insurance, which
secured 65% of the total insurance premiums in the first half of 2012.
As a result of the reforms, the standard health insurance policy has
become more affordable in price. In addition, the average insurance
package includes treatment of oncological diseases and does not rule
out treatment of the diseases revealed.
Drawing parallels between the insurance markets of Armenia and other
countries of the post-Soviet space, it is necessary to point out that
in Armenia the compulsory types of insurance have a prevailing
position in the insurers' portfolios (85%), which is quite the
opposite picture of all the other post-Soviet countries practicing
compulsory types alongside with the voluntary types of insurance.
According to Media XPRIMM, in both Georgia and Azerbaijan, as well as
in a number of Central Asian countries, insurance companies also
practice life insurance, which is missing in Armenia.
Just to compare, in Jan-June 2012 the capacity of Armenia's insurance
market made up 45mln EUR, against 30mln EUR in Turkmenistan and
Moldova, 9.5mln EUR in Tajikistan and just 1.54mln EUR in Kyrgyzstan.
In the "second rate" post-Soviet republics the numbers of insurance
companies are much different: in Turkmenistan there is just one
company, in Tajikistan 14 (with two domineering companies), in Moldova
as many as 24.
In Central Asia only Uzbekistan's insurance market is bigger than
Armenia's. In Jan-June 2012 its capacity made up 57.8mln EUR. In that
country, just like in all of Central Asia, voluntary insurance is
prevalent, with compulsory insurance making up just 1/3 of the local
insurers' premiums.
Media XPRIMM is ArmInfo's partner in insurance analysis. For 10 years
already it has provided professional financial analysis and reviews of
markets in Central and Eastern Europe, Russia and the CIS.