YEREVAN. – Armenia’s pension reform will open the way to life insurance, deputy chairman of Armenia’s Central Bank Nereses Yeritsyan said.

Thus, if the annuity accumulated before the retirement is below 75 percent of the basic pension, the citizen will have to purchase insurance and life insurance in case he lives longer than his retirement account is exhausted.

If savings exceed 75 percent, the life insurance can help, otherwise government will not guarantee the same amount by the time the savings are exhausted.

None of the insurance companies functioning in Armenia has applied for a license for life insurance.

“In 2012 we developed a procedure for issuing licenses so that market participants can start the process,” Yeritsyan said.