ARMENIA plans to liberalize prices in car insurance market

22 November 2012 —
Armenian Prime Minister Tigran Sarkisian said the government plans to liberalize prices for mandatory insurance of vehicles, when speaking at Q&A parliament session today without specifying any date. He said now the government has a real picture of car accidents and a possibility to more accurately calculate the rates for mandatory insurance of vehicles.

The insurance against physical damage caused to other cars and individuals became mandatory in the country on January 1, 2011. According to official numbers, there are about 440,000 vehicles in Armenia.

The prime minister said before the introduction of mandatory insurance there were no precise statistics of road accidents, as not all of them were reported to road police. Sarkisian said the government shares the concerns of the parliamentary opposition concerning the situation on the insurance market.

"We share the concerns about proper distribution of funds and profitability in the insurance market. We discussed these issues with the Central Bank as well as with insurance companies," he said.

According to him, the parties agreed to discuss the situation after summarizing the results of 2012.
Sarkisian said the problem will also be presented for discussion in parliament and assured MPs that the government is ready to discuss any constructive suggestion.

According to the Bureau of Car Insurers of Armenia, local 7 insurance companies in January-August this year paid 27,019 compensation totaling approximately 5.765.3 billion drams. Isurance companies are overseen by the Central Bank.

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ARMENIA plans to liberalize prices in car insurance market
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