Saturday, January 19 2019 16:27

ArmInfo.The MTPL unprofitability ratio increased in 2018 from 65% to 72.5%. This is  evidenced by the data of the Armenian Motor Insurers' Bureau.   According to the Bureau, as of January 1, 2019, there are 508297  vehicles in Armenia with MTPL contract, with a y-o-y increase of  10459 units or 2.1%, against an increase of a year ago by 29710 units  or 6.4%. Of the total number of vehicles with MTPL-contract, 25.23%  covers Rosgosstrakh Armenia, 23.44% - Nairi Insurance, 22.34% - INGO  Armenia, 12.29% - Sil Insurance, 8.53% - Armenia Insurance and 8.17%  - RESO.

The number of MTPL contracts concluded on January 1, 2019 reached  902365, of which 1.9% or 17550 were concluded electronically. In  y-o-y terms, the number of MTPL/ insurance agreements increased by  11.4%. In terms of the share of MTPL insurance contracts,  Rosgosstrakh Armenia leads the total number - 25.18%, followed by  Nairi Insurance - 22.98%, INGO Armenia - 19.88%, Sil Insurance -  13.2%, Armenia Insurance - 9.9% and RESO - 8.9%. But according to the  online MTPL agreements, INGO Armenia leads  - 29.05%, Rosgosstrakh  Armenia is second with 27.93% and Armenia Insurance is the third with  24.35%, while Nairi Insurance, Sil Insurance and RESO account for 4.7  -7.1%.

According to the results of 2018, the total volume of insurance  premiums under these contracts amounted to 19.6 billion drams, having  increased by 5.1% per year, against the growth of 4.9% for 2017.   Rosgosstrakh Armenia is also the leader in terms of this indicator -  26.4%, Nairi Insurance and INGO Armenia occupy the second and third  positions, 21-24%, and the minimum share was ensured by the RESO -  7.9%.  In 2018, 67401 applications were submitted for receiving  insurance claims, for a total amount of over 13.9 billion drams, with  a y-o-y growth of 11.2% and 16.8% respectively. Rosgosstrakh Armenia  holds the lead in terms of the share in the total number of  applications and the total amount of reimbursements - 28.26% and  27.83%, respectively.  The average insurance premium under the  MTPL-contract decreased in 2018 to 21 676 drams from 22 896 drams in  2017 (y-o-y decline by 5.3%), and the average amount of insurance  compensation, on the contrary, rose to 206 544 drams from 196 684  drams (y-o-y growth of 5%).

To note, in Armenia for 7 years since the introduction of compulsory  auto insurance, many steps have been taken to improve not only this  segment, but also the insurance market as a whole. Thus, from March  2016, a system for processing insurance claims on the europrotocol  with a damage threshold of up to 50 thousand drams was introduced in  the MTPL market of Armenia, subsequently increased to 100 thousand  drams in September of the same year. Since September 2016, minimum  and maximum thresholds for annual MTPL insurance policies have been  established, with classification by engine power and vehicle types.  At the same time, a classification scale of risk levels according to  the bonus-malus system was introduced. Since April 2017, a system of  direct indemnities has been introduced on the MTPL market, implying  that in the event of an insured event, the victim receives a refund  from his insurance company, which later returns its amount to  recourse from the insurance company where the damaged car was  insured. Since November 2017, a new opportunity for car owners has  been launched - concluding an MTPL agreement with any insurance  company in on-line mode with an insurance policy at a price 5%  cheaper. From the middle of December 2017, another possibility was  involved in signing an auto-citizen e-insurance - accepting cash when  paying for the insurance policy through the TelCell, EasyPay and  Mobidram, Edram (idram) payment terminals. Thus, the MTPL processes  are transferred to a new level of standards and automation - to the  single window system and the single platform ASWA (Armenian Single  Window for Automative).