Saturday, October 29 2022 19:21

ArmInfo. Following the results of 9 months of 2022, the share of the corporate component in the premium portfolios of Armenian insurers, began to prevail over the  retail component even more - 53.8% (25.6 billion drams) against 46.2%  (21.97 billion drams) , while the gap was smaller in a similar  situation a year ago - 51.8% and 48.2%, respectively. According to  the Financial Rating of Insurance Companies of Armenia as of  September 30, 2022, prepared by ArmInfo, the capacity of the  corporate insurance market accelerated growth more noticeably, from  14% to 30.5%, than the capacity of the retail insurance market, from  10.2% to 20.1%.

Based on the results of 9 months of 2022, corporate insurance  prevails in the premium portfolios of three companies - INGO Armenia,  RosGosstrakh Armenia and Armenia Insurance, and in the remaining  three insurance companies - Nairi Insurance, RESO and Sil Insurance -  retail trade prevails. The largest gap between corporate and retail  insurance is still maintained by INGO Armenia- 69.1% against retail  30.9%, and the smallest gap is maintained by RosGosstrakh Armenia -  51.3% against retail 48.7%. And of the three insurance companies,  which are dominated by the retail component, the maximum gap is  maintained by RESO - 68.8% against 31.2% corporate and the minimum  gap is maintained by for Sil Insurance - 51.9% against 48.1%  corporate. A year earlier, for 9 months of 2021, INGO Armenia also  distinguished itself by the largest dominant of the corporate  portfolio in premiums (63.9%), and RESO distinguished itself by the  dominant retail component (67.7%).

In terms of insurance compensations, the share of payments to retail  customers for the first 9 months of 2022, accounted for 64.9% or 13.8  billion drams, to corporate - 35.1% or 7.5 billion drams, against  64.1% and 35.9%, respectively, a year earlier. At the same time, the  growth of compensations for both individuals and legal entities has  greatly weakened from 12-31% to 7-3%. During the reporting period,  only one insurance company in the reimbursement portfolio was  dominated by the corporate component - INGO Armenia (53.1%), while  the remaining five ICs had a retail component (the largest of  Rosgosstrakh Armenia - 91.8%), as it was a year ago, INGO Armenia the  only dominant in the corporate component (56.8%), and Rosgosstrakh  Armenia (88.1%), as now, was the most retail dominant. 

In terms of premiums transferred for reinsurance, the share of  corporate insurance for the first 9 months of 2022 amounted to 82.9%  or 6.6 billion drams (with an acceleration of y-o-y growth from 18%  to 47%), and retail insurance - 17.1% or 1.4 billion drams (with a  slowdown in y-o-y growth from 77% to 31%), against 81.2% and 18.8%,  respectively, a year earlier. The highest dominance of the corporate  component in the premiums listed for reinsurance was recorded by RESO  - 95.2% against retail 4.8%, and the smallest gap was recorded by Sil  Insurance - 50.9% against retail 49.1%. A year earlier, Rosgosstrakh  Armenia recorded the largest gap between the corporate component and  the retail component - 94.5% versus 5.5%, and Sil Insurance the  recorded the smallest gap - 69.4% versus 30.6%.

Armenian insurers concluded 458,553 contracts in Q3 2022, with a  slight acceleration in y-o-y growth from 11.7% to 12.7%. Thus, the  number of insurance contracts in force as of October 1, 2022 amounted  to 942,866 with an increase of 1.3% from the 1.8% decline in y-o-y  dynamics. Among the classes, the leading position in terms of the  number of concluded contracts is held by CMPTL- 320.740 thousand  contracts in Q3, the number of valid contracts for which by October 1  reached 573.860 thousand contracts. Among the voluntary types of  insurance, in terms of the number of contracts signed quarterly,  travel insurance has became the most popular - 53.680 thousand  contracts, and the previously leading accident insurance was is in  2nd place - 41,720 thousand contracts.

But in terms of the number of contracts in force by October 1, among  voluntary types accident insurance continues to hold the primacy -  167.639 thousand contracts, after which the 2nd and 3rd places are  held by medical insurance and property insurance - 64.009 thousand  and 55.444 thousand contracts respectively.  Moreover, property  insurance occupies the same third place in terms of the number of  quarterly concluded contracts - 13.647 thousand. Rosgosstrakh Armenia  is the leader in terms of the number of contracts valid by October 1  in the CMPTL segment  - 161.904 thousand contracts (of which 78.652  thousand were concluded in Q3), which also holds the lead in the  number of contracts in the segment of medical insurance - 37.2  thousand contracts (of which 2.8 thousand contracts were concluded in  Q3 alone). INGO Armenia it the leader in the number of contracts in  the accident insurance segment  - 68.658 thousand contracts valid as  of October 1 (of which 18.129 thousand contracts were concluded in  Q3).). The leader in CASCO is Nairi Insurance  (6.458 thousand  contracts valid as of October 1, of which 2.031 thousand were  concluded in Q3). INGO Armenia distinguished itself with the largest  number of contracts in insurance of people traveling abroad (travel  insurance), which had 8,199 thousand valid contracts by October 1,  but it managed to conclude 25,096 thousand contracts in Q3.

 And as for the agricultural risk insurance that started in 2020,  which has been carried out by only 3 insurance companies since its  launch (Rosgosstrakh Armenia, INGO Armenia and Sil Insurance), the  number of valid contracts for agro-risk insurance as of October 1,  2022,  amounted to 3.9 thousand, but only one contract was concluded  in Q3. Moreover, according to the number of  agricultural insurance  contracts in force as of October 1, 2022, INGO Armenia took the first  place (1.495 thousand), and Rosgosstrakh Armenia was the only one  that concluded contract for Q3.

In terms of the number of contracts concluded for the third quarter,  Nairi Armenia Insurance Company took the lead - 107.890 thousand,  displacing Rosgosstrakh Armenia Insurance Company second - 103.793  thousand, INGO Armenia Insurance Company third - 97.427 thousand,  RESO Insurance Company fourth. - 58.706 thousand, the fifth - IC "Sil  Insurance" - 48.089 thousand, the sixth - IC "Armenia Insurance" -  42.648 thousand. In all six companies, the dominant in the concluded  contracts falls on OSAGO with a maximum of Armenia Insurance (83.4%)  and a minimum for INGO Armenia (43.9%).

The largest growth in quarterly concluded contracts was recorded for  general liability insurance - 7.1-fold (against 77.5% growth a year  earlier), medical insurance - by 86.5% (against 19% growth a year  earlier), travel insurance - by 67.3% (against a 12-fold increase a  year earlier) and cargo transportation insurance - by 66.1% (against  4.8% growth a year earlier). Of these, in terms of y-o-y growth of  contracts in force as of October 1, general liability insurance is  also in the lead - 3.2-fold (against 7.5% growth a year earlier),  followed by travel insurance - 2.5-fold(against 3.7% -growth a year  earlier), and cargo transportation insurance - by 87.3% (against 8.4%  growth a year earlier). The y-o-y decline in quarterly concluded  contracts was recorded for two classes of insurance - against  accidents and financial damage - by 31-32%.

It should be noted that there are 6 companies operating in the   insurance market of Armenia, which work on 17 out of the available 20   classes of insurance, with the exception of insurance of railway   transport and liability from its use, insurance of legal and   extrajudicial expenses. The agricultural risk insurance class has   been added to the IC reports since the Q2 2020, but it is not added   to the final indicator, since it is taken into account in two other   types of insurance: property from fires and natural disasters,  property from other damages. "INGO Armenia" IC (16) and "Rosgosstrakh   Armenia" IC (15) lead in licensing the largest number of classes. (As  of September 30, 2022, the estimated exchange rate of the dram  against the dollar was 405.65 AMD/$1).