ArmInfo. The loss ratio of compulsory motor third party liability insurance (CMTPL) in Armenia increased on average from 62.9% in the first quarter of 2018 to 64.5% in the first quarter of 2019 (without deduction of reserves), and according to the Bureau of Auto Insurers - from 71.1% to 73.7% (after deduction of reserves).
According to the data of the Financial Ranking of Insurance Companies of Armenia, prepared by ArmInfo IC, the dynamics of premiums on CMPTL started to grow in the first quarter of 2019 by 7.7% from a 2.1% decline in the first quarter of 2018, making 5.8 billion drams ($ 11.9 million ). The growth of refunds accelerated from 11.2% to 12.3%, totaling 3.7 billion drams ($ 7.6 million).
According to Finiancial Ranking of Insurance Companies prepared by ArmInfo news agency, in CMTPL figures, Rosgosstrakh Armenia's leadership in the market is maintained, which by April 1, 2019 ensured the insurance premiums amounting to 1.6 billion and compensations in the amount of 1.1 billion drams, with a y-o-y growth of these indicators by 6.5% and 22.5% respectively. INGO Armenia holds th second place in terms of premiums of CMTPL- 1.5 billion drams, while in terms of the volume of refunds, it occupies the third position - 740.4 million drams. The third place is occupied by IC "Nairi Insurance" - 905.7 million drams, keeping the second position in terms of refunds - 804.5 million drams. The fourth position in terms of insurance premiums and reimbursements of this class is maintained by IC "Sil Insurance" - 730.03 million and 462.7 million drams. Fifth and sixth positions in the CMTPL class are occupied by IC "RESO" and IC "Armenia Insurance": insurance premiums - 599.1 million and 464.2 billion drams respectively, reimbursements - 284.6 million and 325.7 million drams respectively. Out of the 6 insurance companies operating in Armenia, in the first quarter of 2019 five companies increased insurance premiums and compensations for CMTPL. The largest y-o-y growth in premiums was ensured by INGO Armenia IC - by 42%, while in refunds by Armenia Insurance IC- 37%. Only Nairi Insurance recorded decline in CMTPL class premiums - by 25.1%, and IC RESO in refunds - by 27.2%. The loss ratio (without deduction of reserves) also increased in health insurance - up to 25.8% on average in the market for the first quarter of 2019 (against 25% a year earlier). In terms of the full comprehensive insurance class the loss ratio at the average for the I quarter of 2019 was at the level of 60% (without deduction of reserves), which is lower than the figure for the same period last year (66.4%), while for the other classes the loss ratio decreased in y-o-y terms more significantly. The zero loss ratio was recorded in the first quarter of 2019 for liability insurance from the use of air transport, which was observed also a year earlier. To recall, a lot of steps have been taken to improve this market segment within 8 years since the CMTPL was introduced. Since March 2016, the europrotocol mechanism has been implemented. Since April 2017, a direct compensation mechanism has been introduced, which turned out to be a core change in the CMTPL system. From November 1, 2017, the ASWA system was launched - a single window and a single platform for the insurance market, designed by the Armenian Single Window for Automative project. From that moment on, car owners were given a new opportunity - concluding a CMTPL contract with any insurance company in on-line mode paying 5%less for an insurance policy. From mid-December 2017, another tool was introduced when in signing an insurance - accepting cash when paying for an insurance policy through payment terminals with a cash-in function.. Thus, the process of introducing various possibilities for concluding insurance contracts on CMTPL through the Single Window was completed by the end of 2017. In parallel with this, discussions are continuing with the Green Card Bureau on the process of possible membership of Armenia in the system of international motor third party liability insurance. According to the information of Finranking of ArmInfo, 6 companies operating in the insurance market of Armenia out of 20 classes work on 18 (except for railway transport insurance and legal and extrajudicial expenses insurance). Moreover, seismic risk insurance (from earthquakes) has been involved since the beginning of the current 2019 with licensing of all 6 insurance companies in this class.
By April 1, 2019, the total volume of insurance premiums reached 16.5 billion drams, and the indemnities - 5.96 billion, with a y-o-y growth of 17.4% and 4.3%, respectively. CMTPL and medical insurance in terms of premiums and reimbursements hold the lead: CMTPL accounts for 35.2% in premiums and 62.2% in reimbursements, and health insurance - 40.7% and 28.4% respectively.
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