Wednesday, February 7 2018 14:52
Karine Melikyan

At the insurance market of Armenia, growth rates of premiums continue to give way to a significant increase in payments

At the insurance market of Armenia, growth rates of premiums continue  to give way to a significant increase in payments

ArmInfo. The premiums of  Armenian insurance companies for the year 2017 slowed the growth rate  to 5.7% from 6.8% in 2016, against which the refinancing improved the  dynamics with the exit from the 13.7% decline by 30.4% growth. By  January 1, 2018, the total volume of insurance premiums amounted to  34.1 billion AMD, and the amount of insurance indemnities - 18.6  billion AMD (figures are given from the reports of the IC by IFRS  standards).

According to Ranking of insurance companies of Armenia,  prepared by ArmInfo News Agency , as a result of this, the net profit  of the insurance system slipped by 58% in 2017 - to 1.6 billion AMD  (against growth of 34% in 2016). According to the reports of SC  portfolios on CBA standards, insurance premiums amounted to 34.9  billion AMD (with the acceleration of annual growth from 5% to 6.2%),  and compensation - 17.8 billion drams (with a sharp jump in annual  growth rates from 4.9% to 24.9%). The drop in fees during the  reporting period was recorded in 2 out of 6 companies operating in  the insurance market of Armenia, while the recession was not  mentioned by anyone.

The championship on the volume of collected premiums was taken by  INGO Armenia Insurance Company - 9.6 billion AMD. The second place  was Rosgosstrakh Armenia Insurance Company with a portfolio of 9.4  billion AMD. TOP-3 closes SC "Nairi Insurance" - 6.2 billion AMD.  Next to them, by size of the insurance portfolio, SC "Sil Insurance"  - 3.98 billion drams, "RESO" Insurance Company - 3.6 billion AMD and  "Armenia Insurance" Insurance Company - 2.1 billion AMD.

In the structure of insurance premiums, the largest share was  traditionally paid for CMTPL - 54.41% (against 55.3% a year earlier)  or 19.02 billion AMD (annual growth accelerated from 3.5% to 4.4%).  In the segment of medical (including voluntary) insurance companies  collected premiums of 7.1 billion AMD (annual growth slowed from 8.3%  to 28.1%), which in the total volume of insurance premiums was 20.29%  (against 16 , 8% a year earlier). The share of property risks  insurance, in particular from fires and natural disasters accounted  for 7.57% (against 10.02% a year earlier) or 2.6 bln AMD (the annual  dynamics changed from 9.5% growth to 19.8% th recession). In the  segment of CASCO (land transport), insurance companies collected  premiums for 1.9 billion AMD (annual dynamics came out of a 10.2%  decline by 0.5% growth) or 5.57% in the total volume (against 5.9% %  a year earlier).

In addition, according to 9 insurance classes, Armenian insurers  collected 4.2 billion drams. On the 4th insurance classes (insurance  of water transport, liability insurance from water transport,  insurance of provided guarantees and insurance of credit risks),  Armenian insurers did not conclude a single contract during the  reporting period. It should be noted that only Rosgosstrakh Armenia  Insurance Company is engaged in insurance of credit risks in Armenia,  only 2 companies - Rosgosstrakh Armenia and INGO Armenia are engaged  in the aviation insurance segment, and the same two companies are  licensed for insurance of the guarantees, and insurance of water  transport and liability from its use is licensed only by "INGO  Armenia".

In Armenia, from October 1, 2017, the process of step-by-step  introduction of compulsory health insurance (OMC) started and civil  servants became the beneficiaries of the first stage of the social  package. The program of social package for civil servants is  distributed among 6 insurance companies in proportion to market  coverage, the volume of reimbursements and other criteria of modern  standards. While at the first stage, taking into account the status  of beneficiaries, financing is carried out by the Ministry of Health  at the expense of state funds. So it will be in the second stage,  when from the second half of 2018 the social package will cover the  most unsecured segments of the population - 612,000 of the most needy  RA citizens. Only a year later, with positive results of these two  stages, the OMC will work in full force in Armenia. And this means  that from now on all the other working citizens of the country will  fall under the MLA.

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