ArmInfo.In Armenia, third party liability insurance contracts concluded online are continuing to grow rapidly.
According to the data of the Auto Insurers Bureau of Armenia, their number in January-February 2020 reached 16,448 with an annual growth of 3.6 times, with an increase in the share in the total number of third party liability insurance contracts from 3% to 11%. At the same time, the total number of third party liability insurance contracts concluded increased by 5.9% year on year (January-February 2020 to January-February 2019), amounting to 156127. The volume of insurance premiums collected on them amounted to 3.3 billion drams, with annual growth by 6.8%.
The average insurance premium for one third party liability insurance contract increased insignificantly in the annual context - by 0.9% to AMD 21059. This, according to analysts at ArmInfo, is due to a discount when concluding an agreement online.
Applications for insurance compensation were submitted based on the results of January-February 2020 13487, which is 1.3% more than the same period in 2019. And the volume of payments on them amounted to 2.8 billion drams, with an annual growth of 10.6%. Moreover, 5843 applications turned out to be in cases of simplified registration of road accidents (according to Europrotocol) with an annual decline of 10.5%, for which the volume of compensations paid amounted to 412.4 million drams (annual decline of 15.5%), and the average size of one payment was 70588 drams (annual decline of 5.7%). The loss ratio for third party liability insurance in January-February 2020 amounted to 68%, against 75% in the same period of 2019.
According to the Auto Insurers Bureau, in January-February 2020, there are 576449 vehicles with a valid third party liability insurance contract in Armenia. Their number in annual terms increased by 13.4% or 68024 units. 183816 vehicles were insured in Rosgosstrakh Armenia Insurance Company, 108654 units in Nairi Insurance, 97702 units in INGO Armenia, 72,225 units in RESO, 63429 units in Force Insurance, 50623 units in Armenia-Insurance.
It should be noted that in 2019 the number of third party liability insurance contracts entered into online increased by 3.6 times - to 62672, with an increase in the share in the total number of third party liability insurance contracts from 2% to 5%. At the same time, the total number of third party liability insurance contracts concluded in 2019 increased by 33.2%, amounting to1202045. The volume of insurance premiums collected on them amounted to 24.2 billion drams, with an annual growth of 23.5%. The average insurance premium for one Third party liability insurance contract decreased by 7.3% in 2019 - to 20098 drams. Applications for insurance compensation were submitted in 2019 at 78,880, with an annual increase of 17%, and the volume of payments on them amounted to 15.5 billion drams, with an annual increase of 11.6%. Moreover, 35202 applications turned out to be in cases of simplified registration of an accident (according to the Euro protocol), for which compensations in the amount of 2.5 billion drams were paid, and the average size of one payment amounted to 70323 drams. The loss ratio for third party liability insurance in 2019 was 74%, compared to 73% in 2018. As of January 1, 2020, there were 602457 vehicles in Armenia with a valid third party liability insurance contract, with an annual growth of 18.5% or 94161 units.
It should be reminded that in Armenia the system of registration of insured events by Euro-protocol in the third party liability insurance market was introduced since March 2016, initially with a damage threshold of up to 50 thousand drams, subsequently in September of the same year increased to 100 thousand drams. And in 2017, work began on the transition of the third party liability insurance processes to a single window system and a single platform for the insurance market under the project "Armenian Single Window for Automative - ASWA" started in 2017, under an agreement concluded in 2014 with the French Bureau Veritas "(Bureau Veritas Inspection Valuation Assessment and Control). And from that moment, such opportunities began to be introduced in stages: conclusion of insurance policies for third party liability insurance through a single-window platform (October 2017); On-Line sales of policies (November 2017); purchase of policies through payment terminals with cash-in function (December 2017). And in February 2020, the next automation of the third party liability insurance process followed - registration of insurance claims on the euro protocol through the ASWA mobile application.
