Bureau of Motor Insurers: MTPL insurance loss ratio in Armenia down from 55.1% to 53% in 5 years

ArmInfo. The loss ratio of the motor third-party liability insurance (MTPL) for 2015 totaled 53% versus 55.1% in 2011 when the system was introduced, according to data of the Bureau of Motor Insurers. In 2014, this indicator totaled 59.8%, while in 2012-2013, this indicator reached 74.8% and 77%.

In 2015, MTPL insurance premiums totaled 17.7bln drams with a 19.6% growth since 2011and 0.6% year on year decline.

Insurance payments increased by 22.2% for 5 years to 8.8bln drams in 2015, but fell 9.3% year on year.  The average indemnity amounted to 212.7 thousand drams versus 223.4 thousand drams in 2011. In 2014, a MTPL indemnity averages 195.9 thousand drams.

The number of the insurance cars increased by 17.3% since the introduction of MTPL insurance in 2011 to 457,878. In 2015, the number of insurance motor vehicles fell by 1.3%.

The number of satisfied applications for MTPL indemnities totaled 41,203 in 2015, which is by 25,313 applications more than in 2011.  In 2014, by 9,211 fewer applications were satisfied.  The number of the rejected applications total 929 in 2015 versus 349 in 2011 and 1094 in 2014. 

MTPL insurance was introduced in Armenia on Jan 1 2011. The Bureau of Motor Insurers (union of legal entities) was established on June 28 2010 by the decision of the Central Bank of Armenia. The Bureau controls over the activity of motor insurers - members of the Bureau in the field of MTPL insurance, protects the interests of the affected parties, and provides stability and development of the MTPL system.  Members of the Bureau are 6 operating insurance companies. 

(The exchange rate for Dec 31 2015 totaled 483.75AMD/1USD versus 474.97AMD/1USD on Dec 31 2014).