Thursday, January 13 2011 18:50
Nairi Insurance collects motor third-party liability insurance premiums worth 927 mln AMD
ArmInfo. Since the launch of Motor Third Party Liability (MTPL), Nairi Insurance concluded about 30 thsd MTPL agreements worth 927 mln AMD, the company's press service told ArmInfo.
According to the company, the share of corporate clients in the MTPL portfolio is about 20% of the total number of agreements concluded. In the structure of total insurance portfolio of the company the ratio of the corporate clients and individuals has also changed in the latters' favor. The company's specialists consider this to be a very serious achievement, taking into account the "corporate" orientation of the company. According to the experts of Nairi Insurance, an important role in diversification of the portfolio belongs to the advertising policy, which ha provided the company with a status of a serious and reliable insurer.
Head of Nairi Insurance Gor Khachatryan connects the further development of insurance in Armenia with development of some other types of insurance. "The development of only compulsory types can distort the essence of insurance business and provide insurance with the status of a social institute, as establishment and development of this sphere in developed countries went on not via the social, but the business component", he said.
When commenting on possible reduction of MTPL tariffs fixed by the state, Khachatryan pointed out that the loss ratio of this segment will most likely reach the earlier published level of 75-80%, which rules out possible reduction of tariffs. In any case, one should not reduce the tariffs, as in the country with immature insurance culture this may lead to the opposite effect, i.e. growth of distrust in insurers. The most effective solution may be the raising of property damage limit, the average amount of which is actually higher than the fixed limit for indemnities, he said.
Gor Khachatryan pointed out that drivers still find difficulty in distinguishing MTPL from voluntary CASCO, and this complicates the ale of CASCO polices. In addition, many insurees have not got enough money to acquire two policies at the same time – MTPL and CASCO, and give their preference to MTPL.
To recall, Armenian insurers started selling MTPL policies starting 18 Oct 2010. The Law on MTPL will come into force on 1 Jan 2011. According to the tariff plan worked out by the Motor Insurers Bureau and approved the Central Bank of Armenia, the minimum amount of the insurance premium is 18634 AMD, and the maximum one is 110313 AMD. A total of 567 road accidents were registered since the launch of MTPL in Armenia. Experts estimate the MTPL market volumes in Armenia at 13-14 bln AMD ($38 mln).
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