Thursday, May 21 2020 18:24
Karine Melikyan

In Armenia, the growth of health insurance indemnities sharply  accelerated

In Armenia, the growth of health insurance indemnities sharply  accelerated

ArmInfo.For the first quarter of 2020, Armenian insurers reimbursed 6.4 billion drams or $ 12.7 million for different classes (the figures are given from the reports of UK portfolios according to the standards of the CBA). Annual  growth in insurance claims accelerated from 4.3% to 7.1%.

According to the Financial Rating of Armenian Insurance Companies  prepared by ArmInfo IC, insurance premiums, having developed annual  dynamics from a 17.4% growth in the direction of a 4.2% decline,  amounted to 15.8 billion drams or $ 31.4 million.

Five companies provided annual growth of payments, with the largest  at Armenia Insurance IC - by 46.6%, and the only decline recorded at  IC Nairi Insurance (13.9%). Moreover, a year earlier, in the same  period, Armenia Insurance payments recorded only 3% growth, and Nairi  Insurance already then stagnated (0.1%).  Disaggregated by insurance  classes, the largest annual growth in payments was recorded for  financial loss insurance - 22 times (against the 95% decline a year  earlier). After this class, the high rates of annual growth of  indemnities were distinguished: liability insurance against the use  of vehicles - 4.5 times (against the 93.5% decline a year earlier)  and general liability insurance - 87% (against the 86% decline a year  earlier) . The turn of the annual dynamics of payments towards  improvement was also observed in property insurance - with the yield  from the 92.6% decline to 17.6% growth. In addition to these four  classes, health insurance and compulsory motor liability insurance  payments continued to grow, moreover, in the first case, with the  pace accelerating from 5.7% to 17.3%, and in the second, with the  slowing pace from 12.3% to 5.7%.

"However, it is worth paying attention to a sharp slowdown in the  growth of volumes of reinsurance in health insurance - from 28 times  to 51%, which, with the unlimited possibilities of the Armenian  insurance companies, in the face of uncertainty in the development of  the situation associated with the coronavirus pandemic, can  dramatically slow down the growth of premiums and indemnities up to a  reversal a downtrend, "say analysts at the national rating agency  AmRating.

The deterioration in the annual dynamics of payments from growth to  recession was recorded for: freight insurance - 90.4% (against growth  by 7.7 times a year earlier), from accidents - 59.1% (against 13.7%  growth a year earlier) .

In the recession, the annual trend of payments was delayed in two  classes: insurance for people traveling abroad - with an acceleration  of rates from 14.5% to 15.4%, and for hull insurance - with a  slowdown in rates from 19.5% to 6%.

In general, no payments were made on insurance of credit risks, on  insurance of air transport and liability for its use, water transport  and liability for its use, and guarantees provided.

Rosgosstrakh-Armenia IC holds the lead in insurance payments - 1.9  billion drams. The second place is occupied by INGO Armenia IC with a  volume of compensations of 1.5 billion drams. TOP-3 is closed by  Nairi Insurance IC with a payout volume of 949.1 million drams. Close  to them is the IC "Force Insurance" with an indicator of 859.9  million drams. "Armenia Insurance" IC advanced to the fifth position  with the volume of payments of 582.4 million drams. And the RESO  insurance company closes the list of insurance companies with an  indicator of 572.3 million drams.

The largest share of payments in the structure of indemnities  traditionally fell to compulsory motor liability insurance - 61.45%  or 3.9 billion drams, against 62.23% a year earlier. The second  position in the share in the structure of payments is held by health  insurance - 31.1% or 1.99 billion drams, against 28.4% a year  earlier. The third position belongs to CASCO, whose share in the  structure of payments decreased over the year from 4.2% to 3.7%.  Then, according to the share in the structure of payments, follow:  financial loss insurance - 2.4% (against 0.1% a year earlier),  general liability insurance - 0.5% (against 0.3% a year earlier),  insurance traveling abroad - 0 , 33% (against 0.4% a year earlier)  and property insurance - 0.25% (against 0.22% a year earlier). A  decrease in the share in the payout structure was also recorded for  freight insurance from 1.7% to 0.15%, and for accident insurance -  from 0.44% to 0.17%.

In the first quarter of 2020, Armenian insurance companies recorded a  total of 83.3 thousand insured events (with annual growth of 8.6%),  of which the majority accounted for medical insurance - 63.2 thousand  cases. Under the CTP line, insurers recorded over 19.5 thousand  insured events. The insurance of land transport (CASCO) in terms of  the number of cases takes the third place - 386 cases, and in the  fourth place - insurance for people traveling abroad - 115 cases. 2  mandatory types of insurance are practiced in the Armenian insurance  market - CTP and medical insurance of state employees.

Recall that in the insurance market of Armenia there are 6 companies  operating from the available 20 classes of 17 each, with the  exception of railway transport insurance, liability from the use of  railway transport, insurance of legal and extrajudicial expenses.  Moreover, since 2019, in the financial reports on the portfolio of  all 6 insurance companies, at the request of the Central Bank of the  Republic of Armenia, a line of insurance of seismic risks (from  earthquakes) was added, the data for which, although separately  indicated, is not included in the results, since they are already  included in the corresponding insurance classes. The largest number  of classes are licensed by IC INGO Armenia - 16 and IC Rosgosstrakh  Armenia - 15. (Estimated dram-to-dollar rate as of 03/31/20 was  504.47 dr. / $ 1). 

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