Thursday, March 13 2014 18:50
Voluntary motor insurance in Armenia loses its growth rates
ArmInfo. Voluntary motor insurance in Armenia is losing its growth rates.
According to the Ranking of Insurance Companies of Armenia by the Agency of Rating Marketing Information (ArmInfo), in 2013 the segment of the motor own damage insurance in Armenia grew by 9% to 2.1 bln AMD. In 2012 the premiums of the given insurance class grew almost by 40%. It should be pointed out, however, that in 2011 the segment of the motor own damage insurance dropped by 3% due to the launch of the obligatory motor insurance (motor third party liability insurance). Before that the aggregate portfolio of the voluntary motor insurance annually grew by 30-40%.
In 2013 the growth rates of insurance indemnities also slowed down. According to the Ranking, in 2013 the 7 Armenian insurers paid 1.4 bln AMD in the segment of the motor own damage insurance (up 7.6% versus 2012). In 2012 the insurance indemnities of Armenian insurers grew by 38%, in 2011 - by 46.4%, in 2010 they dropped by 3%. Over the past 3 years (2010-2013) the insurance indemnities in Armenia grew more than 3-fold, with the premiums growing by 32% only.
As of 1 Jan 2014, the total number of the motor own damage insurance agreements was 10846. In 2013 alone the 7 insurance companies concluded 4441 agreements in the given segment. Rosgosstrakh Armenia was in the lead in insurance premiums (up 9% versus 2012) - 646 mln AMD. INGO Armenia ranked next with 432 mln AMD (down 10.7% versus 2012). Nairi Insurance was the third with 360.7 mln AMD (up 0.4% versus 2012). Garant Insurance had the smallest portfolio of insurance premiums - 31.8 mln AMD (down 56% versus 2012). In terms of insurance indemnities in the segment of motor own damage insurance, the Armenian insurers ranked in almost the same order.
In 2013, the Armenian insurance companies spent nearly one-fourth of the aggregate premiums (546 mln AMD in motor own damage insurance) on reinsurance (up 15.4% versus 2012).
To note, the motor own damage insurance tariffs depend on a number of factors, particularly, on the driving experience, market price of the car, insurance coverage, etc.