PAAP: With the introduction of a system of direct reimbursements in Armenia, the gap in the average amount of the insurance premium of the insurance company for OSAGO

ArmInfo. With the introduction of a system of direct reimbursements in Armenia, the gap in the average size of the insurance payment for OSAGO has narrowed significantly - from the previous 150-210 thousand drams to the current 178-198 thousand drams.  Vahan Avetisyan, executive director of the Armenian Auto Insurers' Bureau, explained in an interview with ArmInfo correspondent that this is because the principles and approaches of insurance companies to the damage assessment became more similar.

"In other words, the fact that the direct reimbursement system is a typical model of self-regulation is positive.Positive consequences: the risk of reassessing or underestimating a particular damage has decreased as much as possible, the discipline of both the insurance companies themselves and the process of paying reimbursements on their part has increased, and in fact in 2 -3 times the time of payment of insurance claims decreased, "he said.

V. Avetisyan estimated the work of the direct compensation mechanism after almost half a year from the introduction (April 1, 2017) as follows: "This turned out to be a root change in the OSAGO system. To state that the process of transition to this system was very smoothly without excesses, i.e. dissatisfaction with customers, insurance companies or regulators were not recorded.

Perhaps the small differences concerned only the technical part (mutual settlements between insurance companies) transition to this system, but these issues were quickly resolved together with the UK. I will say more, from April to this day differences on mutual settlements between insurance companies recorded only about 200, and this is only 0.5-0.7% of the total number of insurance claims. This suggests that the introduction of a mechanism of direct reimbursement and the Central Bank and the Bureau of Auto Insurers and insurance companies are well prepared and everything was planned in detail." In his opinion, the mechanism of direct reimbursement served as the ultimate goal in weight. "Namely, insurance companies have become much more efficient in providing services - from the registration of the case to the payment of reimbursements." Insurance companies began to compete realistically in the process of organizing insurance payments and now all possible combinations are used for the rapid implementation of reimbursements. the gap in the average size of the insurance payment for OSAGO for various insurance companies has significantly decreased, "he explained.

One of the main indicators of the result of the implementation of the system of direct reimbursements is the actual increase in the loss ratio for OSAGO - from 48.8% at the end of August 2016 to 61.7% a year later.  "This shows the growth in the level of compensations paid, which means that insurance companies have become more efficient in servicing their clients, it is more correct to assess damage and to pay promptly."

At this stage, our expectations for the system of direct reimbursements were fully justified, but to maintain them at the achieved level, tasks in the near future, "V. Avetisyan stated.  According to Ranking of insurance companies of Armenia as of July 1, 2017, prepared by IA ArmInfo, Armenian insurers in the first half of 2017 reimbursed 8.02 billion drams or $ 16.7 million in different classes. In the annual cut, insurance companies' reimbursement increased by 17.7%, against growth by 7 , 8% a year earlier. The largest share of insurance indemnities traditionally fell on OSAGO - 64.94%, against 57.98% a year earlier. According to compulsory motor insurance, insurance compensation changed last year's minus dynamics in 2.8% to the current positive 31.9%.  It should be noted that there are 6 companies (insurance companies) in the insurance market of Armenia, - Rosgosstrakh Armenia, INGO Armenia, Nairi Insurance, Sil Insurance, Armenia Insurance and RESO.  The RA Law "On Mandatory Motor Third Party Liability Insurance" came into force on January 1, 2011, but insurers began to sell OSAGO policies on October 18, 2010. Shortly before that, a self-regulatory organization, the "Bureau of Armenian Auto Insurers", was established to implement the process of introducing the institution of compulsory insurance.