Monday, May 14 2018 13:58
Karine Melikyan

In Armenia, phased introduction of CHI brought retail insurance to growth and sharply accelerated the ascent of corporate

In Armenia, phased introduction of CHI brought retail insurance to  growth and sharply accelerated the ascent of corporate

ArmInfo. The share of retail  insurance in premiums of Armenian insurers in the first quarter of  2018 amounted to 36.8% (5.2 billion AMD), corporate - 63.2% (8.9  billion).

 At the same time, retail insurance improved the annual  dynamics with the release of a 3.9% decline in 4.4% growth, while the  rate of climbing of corporate insurance sharply accelerated from 3.7%  to 94.5%. Before the introduction of OSAGO in Armenia, as well as  obligatory individual health insurance of state employees, the share  of corporate insurance significantly prevailed over retail.

According to Ranking of insurance companies of Armenia prepared by NA  ArmInfo, as of April 1, 2018, corporate insurance prevails in premium  portfolios of all insurers, with the exception of Armenia Insurance,  whose retail prevails - 51.9%. The largest disproportion between  retail and corporate insurance was recorded in INGO Armenia - 29% and  71%. Rosgosstrakh Armenia has a 39% share of retail insurance, and  61% of corporate insurance.

In the structure of insurance reimbursements, the share of payments  to retail customers was 64.3% or 3.7 billion drams, corporate - 35.7%  or 2.04 billion drams. At the same time, reimbursements to legal  entities improved the dynamics with the exit from the 17% decline to  96% growth, while the rate of ascent of payments to individuals  slowed from 30% to 17%.

In the structure of premiums listed for reinsurance, the share of  corporate insurance was 91.3% or 1.02 billion drams (slowdown of  annual growth from 34% to 10%), retail - 8.7% or 96.4 million drams  (with the release of annual dynamics from 4% decline in 90% growth).

Armenian insurers for the I quarter of 2018 concluded 335,360  contracts, exceeding the number of contracts of a year ago by 23.5%.  Thus, the number of insurance valid contracts as of April 1, 2018 was  754232 with an annual growth of 17.1%. In the first quarter, 215.9  thousand OSAGO holds the leading position in terms of the number of  contracts concluded; in the first quarter, the number of active  contracts reached 468.3 thousand. Medical insurance, due to the  gradual introduction of the obligatory segment, reached the second  position in the contracts concluded in the first quarter - 48.2  thousand, as a result of which the number of contracts effective on  April 1 in this class reached 51.4 thousand. It is noteworthy that  health insurance demonstrated the highest growth in terms of the  number of contracts concluded in the quarter, and on the current as  of the reporting date. Of the voluntary types of insurance, the most  popular is insurance against accidents, in which 35.4 thousand  contracts were concluded in the first quarter, and the number of  those operating by April 1 reached 147.7 thousand. According to the  number of contracts in the segment of OSAGO, Rosgosstrakh Armenia  (123.7 thousand) April 1, 52.8 thousand of them were concluded in the  first quarter), which is also in the first position for medical  insurance and for the insurance of those traveling abroad (30.1  thousand, and about 5 thousand as of April 1, respectively). On  insurance against accidents, the first position was taken by INGO  Armenia Insurance Company (54.4 thousand operating on April 1, of  which 18.7 thousand were concluded in the first quarter), according  to CASCO, RESO retains the lead (over 3 thousand operating on April  1), On property insurance, leadership was entrusted to INGO Armenia  (19.6 thousand effective as of April 1).

Rosgosstrakh Armenia is leading in terms of the number of contracts  concluded in the first quarter of the year, 101,000 in the first  place, 70.4 thousand in INGO Armenia, 52.1 thousand in the third  Nairi Insurance, 46.8 thousand at the fourth Force Insurance, 36.2  thousand at the fifth RESO ., and closes the list of Armenia  Insurance - 28.9 thousand. For all six companies, the compulsory  motor third party liability insurance with a maximum of Nairi  Insurance (88.4%) and a minimum of Rosgosstrakh Armenia (52.3%) falls  in the concluded contracts.

In the total number of contracts concluded for the first quarter,  64.4% account for the share of OSAGO, and for health insurance -  14.4%, versus 76% and 0.4%, respectively, a year earlier. And in the  structure of contracts effective as of April 1, 2018, the share of  OSAGO reached 62.1% and medical insurance - 6.8%, versus 67.6% and  1.5% for the same date a year ago.

In Armenia from the available 19 insurance classes for today 17,  except for railway transport, judicial and extrajudicial expenses are  involved. I'm leading in insurance classes - INGO Armenia (16) and  Rosgosstrakh Armenia (15). Moreover, SC "Rosgosstrakh Armenia" is the  only insurance market licensed for insurance of credit risks, and  "INGO Armenia" Insurance Company is the only one for insurance of  water transport and liability from its use. (The calculated exchange  rate of AMD as of March 31, 2008 was 480.06 AMD/USD1).

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