ArmInfo. In the insurance market of Armenia, the growth of premiums for 2018 has accelerated, but so far it is inferior to the growth of payments - 17.6% against 25.3%, the same trend was observed in 2017 with more significant gap - 5.7% against 30.4%.
By January 1, 2019, the total amount of insurance premiums was 40.1 billion drams, while the amount of insurance indemnities was 23.2 billion drams (figures are from insurance companies reports on IFRS standards). According to the Financial Rating of insurance companies of Armenia, prepared by ArmInfo, as a result, the net profit of the insurance system in 2018 accelerated the decline to 67.6% from 58% in 2017, reaching 226.3 million drams. According to the reports of IC portfolios according to the standards of the Central Bank of Armenia, insurance premiums amounted to 41.02 billion drams (with an acceleration of y-o-y growth from 6.2% to 17.4%), and reimbursements - 22.8 billion drams (with an acceleration of y-o-y growth from 24.9% to 28.4%). The decline in fees in the reporting period was recorded only in one company (RESO), which also had the only decrease in reimbursements.
Rosgosstrakh Armenia IC took the lead in terms of premiums collected- 11.6 billion drams. IC "INGO Armenia" with a portfolio of 10.5 billion drams was on the second place. "Nairi Insurance" closes TOP-3 - 8.3 billion drams. By the amount of the insurance portfolio next goes Sil Insurance - 4.6 billion drams, RESO Insurance - 3.3 billion drams and Armenia Insurance - 2.7 billion drams.
In the structure of insurance premiums, the largest share was traditionally accounted for CMTPL - 48.8% (against 54.4% a year earlier) or 20.02 billion drams (y-o-y growth accelerated from 4.4% to 5.3%). In the health insurance segment (including the obligatory component), companies collected premiums of 10.7 billion drams (y-o-y growth jumped from 28.1% to 50.4%), which in the total volume of insurance premiums was 26% (against 20.3% a year earlier). The share of property risk insurance, in particular against fires and natural disasters, was 7.3% (against 7.6% a year earlier) or 2.9 billion drams (the y-o-y dynamics changed from a 19.8% decline to 13.3% - th growth). In the full comprehensive insurance (land transport) segment, insurance companies collected premiums of 2.01 billion drams (y-o-y growth accelerated from 0.5% to 3.2%) or 4.9% in total (versus 5.6% a year earlier).
In addition, by 10 insurance classes, Armenian insurers collected 5.3 billion drams. For the 3 insurance classes (insurance of water transport, insurance of liability for the use of water transport, insurance of guarantees provided), Armenian insurers did not conclude a single contract during the reporting period. It should be noted that in 2018 Armenia Insurance also became involved in credit risks insurance in Armenia, which had previously been practiced only by Rosgosstrakh Armenia Insurance Company. Only 2 companies - Rosgosstrakh Armenia and INGO Armenia - were engaged in the insurance segment of aviation transport, and these same two companies are licensed to insure the guarantees provided, and only INGO Armenia is licensed to insure water transport and liability for its use.
To note, since October 1, 2017, a phased introduction of the compulsory health insurance started in Armenia, starting from the social package for civil servants - over 100 thousand beneficiaries, funded by state funds. So far, the compulsory health insurance will be limited to civil servants, and the underprivileged segments of the population - about 612,000 people - will benefit from the compulsory health insurance only in 2021, after the establishment of the Universal Health Insurance Fund. To recall, in the insurance market of Armenia there are 6 companies that, out of the existing 19 classes, work on 17 classes of insurance, with the exception of railway transport insurance and legal and extrajudicial expenses insurance. By the largest number of classes, INGO Armenia - 16 (the only one working in the water transport insurance class) and Rosgosstrakh Armenia IC - 15 are licensed, followed by Nairi Insurance IC and Armenia Insurance IC- on 12 classes, "RESO" and "Sil Insurance" - on 11 classes. (The estimated exchange rate of the dram to the dollar as of December 31, 2018 was 483.75 AMD/$ 1).