Monday, March 30 2020 13:13

ArmInfo.In Armenia, third party liability insurance contracts concluded online are continuing to grow rapidly.

According to the data of the Auto Insurers Bureau of  Armenia, their number in January-February 2020 reached 16,448 with an  annual growth of 3.6 times, with an increase in the share in the  total number of third party liability insurance contracts from 3% to  11%.  At the same time, the total number of third party liability  insurance contracts concluded increased by 5.9% year on year  (January-February 2020 to January-February 2019), amounting to  156127. The volume of insurance premiums collected on them amounted  to 3.3 billion drams, with annual growth by 6.8%.

The average insurance premium for one third party liability insurance  contract increased insignificantly in the annual context - by 0.9% to  AMD 21059. This, according to analysts at ArmInfo, is due to a  discount when concluding an agreement online.

Applications for insurance compensation were submitted based on the  results of January-February 2020 13487, which is 1.3% more than the  same period in 2019. And the volume of payments on them amounted to  2.8 billion drams, with an annual growth of 10.6%. Moreover, 5843  applications turned out to be in cases of simplified registration of  road accidents (according to Europrotocol) with an annual decline of  10.5%, for which the volume of compensations paid amounted to 412.4  million drams (annual decline of 15.5%), and the average size of one  payment was 70588 drams (annual decline of 5.7%).  The loss ratio for  third party liability insurance in January-February 2020 amounted to  68%, against 75% in the same period of 2019.

According to the Auto Insurers Bureau, in January-February 2020,  there are 576449 vehicles with a valid third party liability  insurance contract in Armenia. Their number in annual terms increased  by 13.4% or 68024 units. 183816 vehicles were insured in Rosgosstrakh  Armenia Insurance Company, 108654 units in Nairi Insurance, 97702  units in INGO Armenia, 72,225 units in RESO, 63429 units in Force  Insurance, 50623 units in Armenia-Insurance.

It should be noted that in 2019 the number of third party liability  insurance contracts entered into online increased by 3.6 times - to  62672, with an increase in the share in the total number of third  party liability insurance contracts from 2% to 5%. At the same time,  the total number of third party liability insurance contracts  concluded in 2019 increased by 33.2%, amounting to1202045. The volume  of insurance premiums collected on them amounted to 24.2 billion  drams, with an annual growth of 23.5%. The average insurance premium  for one Third party liability insurance contract decreased by 7.3% in  2019 - to 20098 drams. Applications for insurance compensation were  submitted in 2019 at 78,880, with an annual increase of 17%, and the  volume of payments on them amounted to 15.5 billion drams, with an  annual increase of 11.6%. Moreover, 35202 applications turned out to  be in cases of simplified registration of an accident (according to  the Euro protocol), for which compensations in the amount of 2.5  billion drams were paid, and the average size of one payment amounted  to 70323 drams. The loss ratio for third party liability insurance in  2019 was 74%, compared to 73% in 2018. As of January 1, 2020, there  were 602457 vehicles in Armenia with a valid third party liability  insurance contract, with an annual growth of 18.5% or 94161 units.

It should be reminded that in Armenia the system of registration of  insured events by Euro-protocol in the third party liability  insurance market was introduced since March 2016, initially with a  damage threshold of up to 50 thousand drams, subsequently in  September of the same year increased to 100 thousand drams.  And in  2017, work began on the transition of the third party liability  insurance processes to a single window system and a single platform  for the insurance market under the project "Armenian Single Window  for Automative - ASWA" started in 2017, under an agreement concluded  in 2014 with the French Bureau Veritas "(Bureau Veritas Inspection  Valuation Assessment and Control). And from that moment, such  opportunities began to be introduced in stages: conclusion of  insurance policies for third party liability insurance through a  single-window platform (October 2017); On-Line sales of policies  (November 2017); purchase of policies through payment terminals with  cash-in function (December 2017). And in February 2020, the next  automation of the third party liability insurance process followed -  registration of insurance claims on the euro protocol through the  ASWA mobile application.