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.

POST A COMMENT
Input digits     


News
AMD 4,248,945 to AMD 4,248,945 to "QaylTech": The August beneficiary of "The Power of One Dram" is "The Rehabilitation City of Heroes" - psychological rehabilitation center
188,856 tourists visit Armenia this July188,856 tourists visit Armenia this July
Accelerated growth of Armenian industrial sector was driven by  processing industryAccelerated growth of Armenian industrial sector was driven by  processing industry
Veolia Djur proposes to raise water tariff in ArmeniaVeolia Djur proposes to raise water tariff in Armenia
State Revenue Committee of Armenia starts active administration in  pursuance of law State Revenue Committee of Armenia starts active administration in  pursuance of law " On Non-Cash Transactions"
Armenia`s premier calls for revising economic programmes Armenia`s premier calls for revising economic programmes 
EDB to allocate $25 million to implement Armenia`s largest livestock  programEDB to allocate $25 million to implement Armenia`s largest livestock  program
Double-digit growth in economic activity in Armenia is accompanied by  surge in imports and exportsDouble-digit growth in economic activity in Armenia is accompanied by  surge in imports and exports
Armenian business forum to be held in Yerevan for second timeArmenian business forum to be held in Yerevan for second time
Production of aluminum foil in Armeniaincreased by 8% in June 2022Production of aluminum foil in Armeniaincreased by 8% in June 2022
Metallurgy industry of Armenia sums up H1 2022 with a 7% declineMetallurgy industry of Armenia sums up H1 2022 with a 7% decline
EDB: Armenia ranks first among member countries with small economies  in current investment portfolio of EDB EDB: Armenia ranks first among member countries with small economies  in current investment portfolio of EDB 
EADB to allocate $37mln for construction of 11 solar power stationsEADB to allocate $37mln for construction of 11 solar power stations
Apartments in Yerevan rose in price by 5.4% in Q2, with increase in  transactions for their purchase and sale by 30.8%Apartments in Yerevan rose in price by 5.4% in Q2, with increase in  transactions for their purchase and sale by 30.8%
 Further rise in food prices in Armenia  Further rise in food prices in Armenia 
Loan payoff with another bank via AppLoan payoff with another bank via App
Deputy Minister: 12 more lanes added to 13 existing lanes of Upper  Lars checkpointDeputy Minister: 12 more lanes added to 13 existing lanes of Upper  Lars checkpoint
Ferry communication to be launched this month - minister Ferry communication to be launched this month - minister 
Armenia is among the TOP-5 destinations for Russian tourists this  autumArmenia is among the TOP-5 destinations for Russian tourists this  autum
Austria to invest in Armenia`s SyunikAustria to invest in Armenia`s Syunik
Gyumri Breeding Station reports three-fold growth in barley output Gyumri Breeding Station reports three-fold growth in barley output 
CBA: In February-June 2022, demand deposits of non-residents  increased significantly in Armenian banksCBA: In February-June 2022, demand deposits of non-residents  increased significantly in Armenian banks
CBA: High demand leads to the expansion of the inflationary  environment and maintenance of high inflation expectations, but dram  appreciation partially neutralizes the price increaseCBA: High demand leads to the expansion of the inflationary  environment and maintenance of high inflation expectations, but dram  appreciation partially neutralizes the price increase
Minister: The share of the mining industry in the total volume of  Armenia`s exports has decreasedMinister: The share of the mining industry in the total volume of  Armenia`s exports has decreased
Statistical data, real situation in agricultural sector different -  minister Statistical data, real situation in agricultural sector different -  minister 
FLYONE ARMENIA launches flights to Domodedovo International AirportFLYONE ARMENIA launches flights to Domodedovo International Airport
Armenia, Iran deepen cooperation in mining industryArmenia, Iran deepen cooperation in mining industry
CBA raises refinancing rate from 9.25% to 9.5% CBA raises refinancing rate from 9.25% to 9.5% 
23.9% rise in petrol prices in Armenia in first half of 2022 23.9% rise in petrol prices in Armenia in first half of 2022 
Armenia meets Russia`s brand demandArmenia meets Russia`s brand demand
Armenia is not ready to open the land border with Turkey: ExpertArmenia is not ready to open the land border with Turkey: Expert
Armenia, Qatar discuss possible areas of bilateral cooperationArmenia, Qatar discuss possible areas of bilateral cooperation
Massive arrival of Russians to Armenia, along with movement of their  capital, ensured 7-multifold increase in net inflow of remittances  from Russia in Q2 2022Massive arrival of Russians to Armenia, along with movement of their  capital, ensured 7-multifold increase in net inflow of remittances  from Russia in Q2 2022
Ardshinbank offers a new type of loan for small and medium enterprises.Ardshinbank offers a new type of loan for small and medium enterprises.
Armenia among priority partners of Austrian Development AgencyArmenia among priority partners of Austrian Development Agency
International reserves of Armenia reaches historical maximum by July  2022International reserves of Armenia reaches historical maximum by July  2022
More funds for government-sponsored medical services More funds for government-sponsored medical services 
South Caucasus Railway delivers production equipment from Yerevan to  KrasnodarSouth Caucasus Railway delivers production equipment from Yerevan to  Krasnodar
4% inflation expected in Armenia in medium-term 4% inflation expected in Armenia in medium-term 
Ameriabank leads in list of largest taxpaying banks in ArmeniaAmeriabank leads in list of largest taxpaying banks in Armenia
Armenia`s communication companies pay 25% less as taxes to budget in  1st half of 2022Armenia`s communication companies pay 25% less as taxes to budget in  1st half of 2022
Over 500 Armenian servicemen to benefit from soft lending programmeOver 500 Armenian servicemen to benefit from soft lending programme
Washington to allocate $120mln to Armenia for democratic development,  economic stabilityWashington to allocate $120mln to Armenia for democratic development,  economic stability
17.1% increase in food prices significantly affected low-income  citizens of Armenia - study17.1% increase in food prices significantly affected low-income  citizens of Armenia - study
Armenia, Ethiopia consider development of cooperation in e-governance  and technology educationArmenia, Ethiopia consider development of cooperation in e-governance  and technology education
Armenian assets of GeoProMining Group of Compaines significantly  increase payments to state budgetArmenian assets of GeoProMining Group of Compaines significantly  increase payments to state budget
Vardan Aramyan pointed to risks for Armenia`s GDP and loss of  potential of Russian economy amid IMF`s Vardan Aramyan pointed to risks for Armenia`s GDP and loss of  potential of Russian economy amid IMF`s "Gloomy and More Uncertain"  forecast
Armenia`s vice-premier hosts AMD company vice-presidents Armenia`s vice-premier hosts AMD company vice-presidents 
MFA: Sanctions against Russia have their negative direct or indirect  impact on Armenia`s economic development MFA: Sanctions against Russia have their negative direct or indirect  impact on Armenia`s economic development 
Mirzoyan, Lipavsky note need to fully realize potential of trade and  economic bilateral relationsMirzoyan, Lipavsky note need to fully realize potential of trade and  economic bilateral relations
Zangezur Copper-Molybdenum Combine topped list of taxpayers in  Armenia in H1 2022Zangezur Copper-Molybdenum Combine topped list of taxpayers in  Armenia in H1 2022
Converse Bank completes distribution of bonds ahead of scheduleConverse Bank completes distribution of bonds ahead of schedule
Armenia implements intellectual property development strategyArmenia implements intellectual property development strategy
Iran successfully expands trade with Armenia: Iran TPO headIran successfully expands trade with Armenia: Iran TPO head
Converse Bank offers new loans to SME’sConverse Bank offers new loans to SME’s
Participants of CaseKey Competition visit Team Telecom ArmeniaParticipants of CaseKey Competition visit Team Telecom Armenia
Armenia is among CNN`s 23 of the world`s best hiking trailsArmenia is among CNN`s 23 of the world`s best hiking trails
Double-digit growth of economic activity in Armenia is accompanied by  high growth rates of imports and exportsDouble-digit growth of economic activity in Armenia is accompanied by  high growth rates of imports and exports
Armenia`s wheat demand is 377,000 tons Armenia`s wheat demand is 377,000 tons 
Travel agencies offering Russian tourists to get bank cards in  ArmeniaTravel agencies offering Russian tourists to get bank cards in  Armenia
Read more


Exchange rates
09.08.2022
RUB6.72-0.01
USD406.28-0.33
EUR415.501.12
GBP491.88-0.32
CAD315.970.74
JPY30.12-0.04
CNY60.110.05
CHF426.231.48