Life insurance rates in Armenia don’t exceed the index of 2%, while in mature markets it’s 35-46%.

This data is provided by HSBC Bank’s new “Power of Protection - Confidence in the future” report.

The authors of the report believe that in this regard, Armenian insurance market is close to markets like the UAE, where low life insurance rates are specified by low demand.

“In Armenia, the insurance and protection market is still in its embryonic stage as people do not realise its importance, and as a result insurance companies and financial institutions don’t offer these products due to lack of demand,” says the report.
    
According to Head of Retail Banking and Wealth Management of HSBC Bank Armenia Mihran Muradyan, it is especially important to consider investing in insurance during a downturn, as it helps mitigate the cost of uncertainty such as job loss or bad health.

“The unemployment rate in Armenia was 18.5% in 2015, which the highest in the last five years. This indicates people need to take more responsibility by investing in tomorrow and by being financially prepared should something unforeseen happens in their lives or careers,” noted the representative of HSBC Bank Armenia.