Wednesday, April 29 2020 15:27

ArmInfo. In Armenia, the online purchase of a Compulsory Motor Third Party Liability (CMTPL)  insurance is rapidly gaining popularity. According to the data of the  Car Insurance Bureau of Armenia, in the first quarter of 2020, the  number of CMTPL agreements signed in online mode reached 24,975, an  increase of 3.2-fold year on year, which increased their share in the  total number of CMTPL agreements from 3% to 11%.  

At the same time, the total number of CMTPL agreements concluded decreased by 1.9% year  on year (Q1 2020 to Q1 2019), amounting to 226,368. The volume of  insurance premiums collected on them amounted to 4.8 billion AMD,  with y-o-y growth of 2% alone.

The average amount of the insurance premium for one CMTPL agreement  increased in y-o-y terms by 4% to 21126 AMD. The discount when  concluding an agreement online can be the reason, ArmInfo analysts  suggest.  19964applications for insurance compensation were submitted  based on the results of the 1st quarter of 2020, which is 3.3% more  than the same period in 2019. The volume of payments on them amounted  to 4.1 billion AMD, with a y-o-y growth of 10.4%. Moreover, 8707  applications turned out to be in cases of simplified registration of  road accidents (according to Europrotocol) with a y-o-y decline of  6.1%, for which the volume of compensations paid amounted to 581.4  million AMD (y-o-y decline of 15.6%), and the average amount of one  payment was 66774 AMD (y-o-y decline of 10.1%).

The CMTPL loss ratio for the Q1 2020 was 64%, against 74% in the same  period of 2019.  According to the results of the 1st quarter of 2020,  in Armenia there are 558158 vehicles with the current CMTPL  agreement. Their number in y-o-y terms increased by 9.7% or by 49157  units. 179567 vehicles were insured in Rosgosstrakh Armenia Insurance  Company, 106883 units in Nairi Insurance, 91173 units in INGO  Armenia, 70508 units in RESO Insurance, 61595 units in Sil Insurance,  48432 units in Armenia Insurance.

To note, since March 16, as part of measures to prevent the spread of  the coronavirus pandemic, a state of emergency  has been introduced  in Armenia, which will last until May 14 inclusive. In this regard,  some activities in the first month of emergency were temporarily  banned (including restaurants, cafes, bars, casinos, hotels,  canteens, retail facilities and industries not related to food and  medical products), which was partially lifted during the second half  of April. As part of the ban on certain types of activities, public  transport (including the metro) was suspended in the republic and the  movement of other vehicles was restricted, and international  aviation, rail and bus services were limited.

According to the Car Insurance Bureau of Armenia, in the first  quarter of 2019, the number of online CMTPL agreements increased by  almost 4-fold- up to 7698. At the same time, the total number of  CMTPL agreements entered into increased by 18.2% over the year,  amounting to 230,792, and the amount of insurance premiums collected  on them increased by 10.4% to 4.7 billion drams. The average amount  of insurance premiums for one CMTPL insurance contract decreased by  6.6% over the year - to 10323 AMD. 19323applications for insurance  compensation were submitted for the I quarter of 2019  (an increase  of 19.4% yoy), and the volume of payments on them amounted to 3.7  billion AMD (an increase of 10.1% yoy). Moreover, 9272 applications  turned out to be in cases of simplified execution of road accidents  (according to the Euro protocol), for which compensations in the  amount of 688.9 million AMD were paid, and the average amount of one  payment amounted to 74295 AMD. The CMTPL loss ratio for Q1 2019  amounted to 74%, against 71% a year earlier. According to the results  of the 1st quarter of 2019, there were 50,9001 vehicles in Armenia  with the current CMTPL agreement (y-o-y growth of 3.6% or 17781  units). 

It should be reminded that in Armenia, the system of registration of  insurance claims for Euro-protocol in the CMTPL market was introduced  since March 2016, initially with a damage threshold of up to 50  thousand drams, subsequently in September of that year increased to  100 thousand drams. And in 2017, work began on the transition of  CMTPL processes to a single window system and a single platform for  the insurance market under the Armenian Single Window for Automative  - ASWA project, under an agreement concluded in 2014 with the French  Bureau Veritas Inspection Valuation Assessment and Control). And from  that moment, such opportunities began to be introduced in stages:   conclusion of insurance policies for compulsory motor 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, another automation of the MTPL process followed -  registration of insured events through the Euro protocol through the  ASWA mobile application.