Step-by-Step introduction of complete medical insurance in Armenia  accelerates corporate insurance

ArmInfo. The share of retail  insurance in the portfolios of premiums of Armenian insurers for the  first half of 2018 was 44.7% (9.8 billion drams), corporate insurance  - 55.3% (12.2 billion drams). At the same time, year-over-year growth  of retail insurance accelerated from 2.7% to 6%, while the  acceleration rate of corporate insurance growth increased sharply  from 8.5% to 58.2%.  Before the introduction of CMTPL in Armenia, as  well as obligatory individual health insurance of state employees,  the share of corporate insurance significantly prevailed over retail  one. 

According to Ranking of Insurance Companies of Armenia, prepared by  IC ArmInfo, as of July 1, 2018, corporate insurance prevails in  premium portfolios of all insurers, except for Armenia Insurance and  RESO, whose retail prevails - 55.5% and 51.2%, respectively. The  largest disproportion between rҐtail and corporate insurance was  recorded in INGO Armenia - 36.6% and 63.4%. "Rosgosstrakh Armenia"  has a 45.5% share of retail insurance, and 54.5% of corporate  insurance.

In the structure of insurance reimbursements, the share of payments  to retail customers was 66% or 7.1 billion drams, corporate ones -  34% or 3.7 billion drams. At the same time, reimbursements to legal  entities sharply accelerated growth - from 7% to 55%, while the rise  in payments to individuals accelerated only from 23% to 26%.

In the structure of premiums transferred for reinsurance, the share  of corporate insurance was 91.2% or 2.1 billion drams (sslackened  y-o-y growth from 34% to 13%), retail - 8.8% or 199.3 million drams  (with an acceleration of y-o-y growth from 13% to 55%).

Armenian insurers for the II quarter of 2018 concluded 296,670  contracts, exceeding the number of contracts signed in previous year  by 17.4%. Thus, the number of insurance contracts effective as of  July 1, 2018 was 794212 with a y-o-y growth of 19.8%. The leading  position in terms of the number of concluded contracts is held by  CMTPL - in the II quarter of 2018 191.4 thousand, the number of valid  contracts by which reached 1.07 million by July 1. Medical insurance,  due to the gradual introduction of the obligatory segment, took the  second position in terms of the number of treaties effective by July  1 - 50.4 thousand, in the II quarter alone  2.2 thousand contracts  were concluded. It is noteworthy that medical insurance demonstrated  the highest growth in the number of acting contracts - 5.2-fold.  Among voluntary types of insurance, the most popular is insurance  against accidents-59.2 thousand contracts were concluded in the Q2,  and the number of ones effective by July 1 reached 179.7 thousand.  The leding position by the number of contracts in the segment of  compulsory motor third party liability is held Rosgosstrakh Armenia  (124.5 thousand July 1, of which 47.5 thousand were concluded in the  Q2), which is also the first in terms of health insurance and travel  insurance (29.8 thousand and 5.1 thousand respectively operating on  July 1). In insurance against accidents, the first position was taken  by INGO Armenia Insurance Company (84.7 thousand effective contracts   as of July 1, of which 31.9 thousand were concluded in the Q2), by  number of CASCO, RESO holds the leadership (2.4 thousand contracts  effective as of July 1), by property insurance leadership is held by  "INGO Armenia" (21.6 thousand effective as of July 1).

In terms of the number of contracts concluded in the Q2, INGO Armenia  leads - 78.7 thousand, Rosgosstrakh Armenia ranks second with more  than 74 thousand contracts, Nairi Insurance  is the third- 58.9  thousand,  RESO is the fourth - 29.4 thousand, Sil Insurance is the  fifth - 29 thousand, and Armenia Insurance is the last on the list -  26.6 thousand. CMTPL contracts hold major share of contracts signed  by all the six companies with a maximum by Sil Insurance (89%) and a  minimum by INGO Armenia (43%).

In the total number of contracts concluded in Q2 the share of  CMTPL  accounted for 64.5%, and the share of medical insurance - 0.7%,  compared to 72% and 0.5%, respectively, a year earlier. And in the  structure of the contracts effective as of July 1, 2018, the share of  CMTPL reached 59.2% and medical insurance - 6.3%, against 68% and  1.5% for the same period a year earlier.

To note, as of today 17 from the available 19 insurance classes are  provided in Armenia, except for railway transport, judicial and  extrajudicial expenses insurance. INGO Armenia (16) and Rosgosstrakh  Armenia (15) are the leaders by insurance classes. Moreover,  "Rosgosstrakh Armenia" is the only one on the 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  30.06.18 was 482.24 dr / $).