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.
