Wednesday, February 7 2018 14:52
Karina 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
USD transactions down, RUB ones up in Armenia`s interbank foreign exchange market, May 5 to 8, 2025 USD transactions down, RUB ones up in Armenia`s interbank foreign exchange market, May 5 to 8, 2025 
In Q1 2025, Armenia`s IT sector experienced 24.5% annual growth rateIn Q1 2025, Armenia`s IT sector experienced 24.5% annual growth rate
In Armenia, service sector experienced accelerated growthIn Armenia, service sector experienced accelerated growth
Free economic zone to be established in Yeghipatrush Free economic zone to be established in Yeghipatrush 
RA MESCS presents terms of participation in industry courses in IndiaRA MESCS presents terms of participation in industry courses in India
"Electric Networks of Armenia" to modernize power supply network in  center of Yerevan
“My Ameria, My Family” – Lots of Benefits, Raffle of 300+ Gifts and Much More“My Ameria, My Family” – Lots of Benefits, Raffle of 300+ Gifts and Much More
Launch of digital radio discussed in ArmeniaLaunch of digital radio discussed in Armenia
Armenia`s Cabinet approves Armenian-Japanese convention abolishing  double taxation Armenia`s Cabinet approves Armenian-Japanese convention abolishing  double taxation 
Armenia to join Ashkhabad agreement Armenia to join Ashkhabad agreement 
Armenia to have new Law on Eletric Energy by end of 2025 Armenia to have new Law on Eletric Energy by end of 2025 
Hayordi Camp is the May beneficiary of The Power of One DramHayordi Camp is the May beneficiary of The Power of One Dram
In 2026, government to increase funding for  modernizing water supply  and drainage systemsIn 2026, government to increase funding for  modernizing water supply  and drainage systems
Converse Bank Joins the Asian Development Bank`s Green Finance CommitmentConverse Bank Joins the Asian Development Bank`s Green Finance Commitment
In Q1 2025, Armenia`s trade sector generated $3.4 billion in revenueIn Q1 2025, Armenia`s trade sector generated $3.4 billion in revenue
Natural population growth rate decreasing  in ArmeniaNatural population growth rate decreasing  in Armenia
In Q1, Armenia experienced a notable decrease in cognac and wine  productionIn Q1, Armenia experienced a notable decrease in cognac and wine  production
In Q1 2025, power generation in Armenia increased by 6.5% per annumIn Q1 2025, power generation in Armenia increased by 6.5% per annum
Armenia`s metallurgical industry experiences a decline in Q1 2025Armenia`s metallurgical industry experiences a decline in Q1 2025
Armenia`s industrial sector sagging due to declining manufacturing industry volumesArmenia`s industrial sector sagging due to declining manufacturing industry volumes
IFC ready to invest in Armenia`s energy, transport sectors IFC ready to invest in Armenia`s energy, transport sectors 
Wizz Air opens base in Armenia, launches new flights Wizz Air opens base in Armenia, launches new flights 
Possibilities of establishing public-private partnership with Yandex  company discussed in Yerevan Possibilities of establishing public-private partnership with Yandex  company discussed in Yerevan 
Armenian-Georgian business forum held in YerevanArmenian-Georgian business forum held in Yerevan
Modernization works carried out at National Center for Mental Health Modernization works carried out at National Center for Mental Health 
Martin Galstyan: It is essential to implement challenging reformsMartin Galstyan: It is essential to implement challenging reforms
Central Bank Governor: Only 0.1% of loans are related to banking  fraud and cyberattacksCentral Bank Governor: Only 0.1% of loans are related to banking  fraud and cyberattacks
Culture, humanity and responsibility: Araratbank supports  Belgian  band HOOVERPHONIC`s  concerts in ArmeniaCulture, humanity and responsibility: Araratbank supports  Belgian  band HOOVERPHONIC`s  concerts in Armenia
In Armenia, annual inflation rate increased to 3.2% in April due to higher prices for food and servicesIn Armenia, annual inflation rate increased to 3.2% in April due to higher prices for food and services
Economic activity in Armenia slowing down, with foreign trade also decliningEconomic activity in Armenia slowing down, with foreign trade also declining
Armenia to extend ban on export of some agricultural products for another 6 monthsArmenia to extend ban on export of some agricultural products for another 6 months
Armenia to deepen cooperation in tourism industry with QatarArmenia to deepen cooperation in tourism industry with Qatar
Armenia`s CB leaves refinancing rate unchanged 6.75%Armenia`s CB leaves refinancing rate unchanged 6.75%
Gogavat-Guguti checkpoint stops serving vehicles Gogavat-Guguti checkpoint stops serving vehicles 
RA Ministry of Economy presents  <Syunik: Economic Hub of the South  Caucasus> programRA Ministry of Economy presents   program
Armenian authorities consider expanding affordable housing program to  families in border settlementsArmenian authorities consider expanding affordable housing program to  families in border settlements
In January-April 2025, RA SRC collected 4.5% more taxes compared to   same period last yearIn January-April 2025, RA SRC collected 4.5% more taxes compared to   same period last year
Pashinyan thanks citizens for their efforts in filling the state  treasuryPashinyan thanks citizens for their efforts in filling the state  treasury
Exclusive Hooverphonic Performance and AraratBank`s Social Initiative to Mark Philharmonic`s Centennial CelebrationsExclusive Hooverphonic Performance and AraratBank`s Social Initiative to Mark Philharmonic`s Centennial Celebrations
Living costs much higher in Armenia than minimum pensions - Country fort Life party leader Living costs much higher in Armenia than minimum pensions - Country fort Life party leader 
Armenia`s authorities paln forming effective consumer protection  system Armenia`s authorities paln forming effective consumer protection  system 
Filling stations pay AMD 1.6bln to state budget in fraud case Filling stations pay AMD 1.6bln to state budget in fraud case 
Prime Minister`s visit to Lori region of ArmeniaPrime Minister`s visit to Lori region of Armenia
Dollar transactions resumed in Armenian interbank foreign exchange  market from April 28- May 2, 2025Dollar transactions resumed in Armenian interbank foreign exchange  market from April 28- May 2, 2025
Armenian Eurobonds 5th tranche offering a yield of 7.1%, indicates   that foreign investors perceive Armenia as a high-risk investment -  David AnanyanArmenian Eurobonds 5th tranche offering a yield of 7.1%, indicates   that foreign investors perceive Armenia as a high-risk investment -  David Ananyan
Tigran Jrbashyan urges Ministry of Economy not to close program for  engaging highly qualified specialists, but to return to its origins  and implement it in conjunction with  overall strategyTigran Jrbashyan urges Ministry of Economy not to close program for  engaging highly qualified specialists, but to return to its origins  and implement it in conjunction with  overall strategy
Entrepreneurs from Lyon  interested in investing in ArmeniaEntrepreneurs from Lyon  interested in investing in Armenia
For Q1 2025, Armenia`s state budget  executed with  surplusFor Q1 2025, Armenia`s state budget  executed with  surplus
RA Ministry of Finance once again amending law on state debtRA Ministry of Finance once again amending law on state debt
Amulsar`s restart to positively impact Armenia`s GDP final growth in  2025 - Finance MinisterAmulsar`s restart to positively impact Armenia`s GDP final growth in  2025 - Finance Minister
Demand for Armenian Eurobonds three times higher than placement  volume - Finance MinisterDemand for Armenian Eurobonds three times higher than placement  volume - Finance Minister
Meeting with ITF reps at Ministry of Territorial Administration and InfrastructureMeeting with ITF reps at Ministry of Territorial Administration and Infrastructure
Armenia, Sweden to expand innovation, technological and investment cooperation Armenia, Sweden to expand innovation, technological and investment cooperation 
Potential and Development Prospects of Health Tourism in Armenia forum to take place in Yerevan Potential and Development Prospects of Health Tourism in Armenia forum to take place in Yerevan 
Armenia`s gross international reserves reach $3.9blnArmenia`s gross international reserves reach $3.9bln
With a Mission to Preserve Armenian Heritage: AraratBank Sponsors the With a Mission to Preserve Armenian Heritage: AraratBank Sponsors the "Artsakh" Orchestra Concert
Armenia  to establish  Institute of Agricultural ConsultantsArmenia  to establish  Institute of Agricultural Consultants
Activities on mandatory insurance of hazardous industrial facilities  to be carried out in ArmeniaActivities on mandatory insurance of hazardous industrial facilities  to be carried out in Armenia
Armenia`s Ministry of Territorial Administration, World Bank  representatives sum up Armenia`s Ministry of Territorial Administration, World Bank  representatives sum up "Social Investment and Local Development"  program 
Team Telecom Armenia Expands International Partnerships: U.S. Newsmax Channel to Air in ArmeniaTeam Telecom Armenia Expands International Partnerships: U.S. Newsmax Channel to Air in Armenia
Read more
Exchange rates
08.05.2025
RUB4.73-0.09
USD389.25-0.03
EUR439.39-2.99
GBP516.22-3.24
CAD280.52-1.79
JPY26.89-0.29
CNY53.78-0.10
CHF471.30-1.53