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).