Role of the RA Insurance Companies in the Economic Development

Abstract

In countries with developed market relations, insurance is one of the most important sectors of economic development. Insurance helps to reduce the expenditure burden of the state budget by reimbursing damage caused to citizens, organizations and the state as a result of natural disasters, man-made disasters or other accidents. It contributes to the strengthening of socio-economic stability in society, being an integral part of the system of social protection of the population in the economy. Insurance makes a significant contribution to strengthening the country’s financial system, being a more flexible and reliable source of investment resources in the economy.

This research is aimed at identifying the role of the insurance system of the Republic of Armenia in the economic development of the Republic of Armenia, studying the directions, scales and dimensions of its influence. Within the framework of this work, all possible aspects of the economic activity of the insurance companies of the Republic of Armenia, which could stimulate or hinder the economic progress of the country, were analyzed. An attempt was made to find the relationship between economic growth/real sector of the economy and the insurance market. The study led to the conclusion that the insurance system of the Republic of Armenia, having modest resources, has a positive impact on the economic situation of the country in almost all areas of its economic activity.