Friday, May 22 2020 15:33
Karine Melikyan

In Armenian insurance market corporate portfolio dominates in  premiums, while retail component dominates in reimbursements

In Armenian insurance market corporate portfolio dominates in  premiums, while retail component dominates in reimbursements

ArmInfo.According to the results of the Q1 of 2020, the corporate component dominates in the premium insurance portfolios of Armenian insurers - 64.2% (10.2 billion drams), while the retail component accounts for 35.8% (5.7 billion  drams), against 65.8% and 34 2% respectively a year earlier. 

According to the Financial Rating of Armenian Insurance Companies,  prepared by ArmInfo IC, the retail insurance market capacity has  slowed y-o-y growth from 9% to stagnant 0.3%, along with which the  dynamics of corporate insurance has worsened - from 22.3% growth to  6.5% the recession.

According to the results of the Q1 of 2020, corporate insurance  prevails in the premium portfolios of five companies, and only RESO  IC dominates the retail component (60.8% versus corporate 39.2%). The  largest gap between corporate and retail insurance was recorded at  INGO Armenia IC - 80.9% compared to retail 19.1%, and the smallest  gap at <Armenia Insurance> was 56.5% versus retail 43.5%. The same  two companies a year earlier were distinguished by the largest and  smallest gap: "INGO Armenia" IC - 74.8% versus retail 25.2%,   "Armenia Insurance" - 52.4% versus retail 47.6%.

In the structure of insurance indemnities, the share of payments to  retail customers accounted for 68.7% or 4.4 billion drams, corporate  - 31.3% or 1.999 billion drams, against 70.1% and 29.9%,  respectively, a year earlier. At the same time, reimbursements to  legal entities brought the y-o-y dynamics from a 13% decline to a 12%  increase, while the upward trend in payments to individuals slowed  significantly - from 14% to 5%. The only IC in which, according to  the results of the Q1 of 2020, the corporate component dominated in  the compensation portfolio, was "INGO Armenia" - 50.3% versus retail  49.7%. And of the other five companies, Rosgosstrakh Armenia IC has  the largest dominant retail component - 94.1% versus corporate 5.9%,  and the lowest "Armenia Insurance"  - 52% versus corporate 48%. A  year earlier, during the same period, in the reimbursement portfolio  of all six insurance companies the retail component dominated, with  the greatest disproportion at "Rosgosstrakh Armenia"- 89.2% against  corporate 10.8%, and the smallest at RESO - 52.5% against corporate  47.5%.

In the structure of premiums transferred for reinsurance, the share  of corporate insurance in the Q1 of 2020 amounted to 90.1% or 1.7  billion drams (with a turn in a y-o-y dynamics with a 2.7-fold  increase by a 37% decline), and retail - 9 .9% or 188.8 million drams  (with accelerated y-o-y growth from 30% to 51%), against 95.6% and  4.4%, respectively, a year earlier. The largest dominant of the  corporate component in premiums transferred for reinsurance was  recorded by <Armenia Insurance>  - 98.4% versus retail 1.6%, and the  smallest dominant by RESO IC - 80.5% versus retail 19.5%. A year  earlier, <Armenia Insurance> also had the largest gap with the same  indicators, and Nairi Insurance was the smallest - 72.8% compared to  retail 27.2%.

For the Q1 of 2020, Armenian insurers concluded 422,098 contracts,  exceeding the number of contracts a year ago by only 0.8% (against  24.8% growth a year earlier). Thus, the number of insurance contracts  in force on April 1, 2020 amounted to 996829 with a y-o-y growth of  7.6% (against 22.8% growth a year earlier). Among classes, CMTPL  holds the leading position in the number of concluded contracts  - in  the Q1, over 243.9 thousand, the number of valid contracts for which  as of April 1 exceeded 538.2 thousand.

From the voluntary insurances, accident insurance is the most  demanded one, of which 75.7 thousand contracts were concluded in the  Q1, and the number of existing ones by April 1 exceeded 262.5  thousand.  Medical insurance follows next - 60.1 thousand concluded  contracts in the Q1, and the number of contracts currently in force  reached 66.4 thousand by April 1. In terms of the number of contracts  in the CMTPL segment, Rosgosstrakh Armenia IC is the leader (173.7  thousand operating as of April 1, of which 82.5 thousand were  concluded in the first quarter), and the same company dominates the  number of health insurance contracts  (38 thousand in force as of  April 1, of which 36.5 thousand concluded in the Q1).

INGO Armenia is the leader in accident insurance (98.6 thousand in  force as of April 1, of which 46.8 thousand concluded in the Q1),  which holds the lead in property insurance as well (30.7 thousand in  force as of April 1 of which 5.7 thousand were concluded in the Q1).  As of fully comprehensive insurance, Nairi Insurance holds the lead  (5.5 thousand in force as of April 1). The INGO Armenia IC is the  leader in insurance of travelers abroad. By April 1, there are 5.3  thousand contracts in force, of which 4.4 thousand are concluded in  the Q1.

In terms of the number of contracts concluded in the Q1, IC  Rosgosstrakh Armenia holds the first position - 141.8 thousand, the  second - INGO Armenia IC - 89.2 thousand, the third - RESO IC - 58.7  thousand, the fourth - Nairi Insurance IC - 52.4 thousand, the fifth  - Sil Insurance IC - 50.7 thousand, sixth - <Armenia Insurance> -  29.3 thousand. The CMPTL with the maximum concluded contracts  dominates for all six companies with the maximum of Nairi Insurance  (87.2%) and a minimum of INGO Armenia (33.6%).

To recall, in the insurance market of Armenia there are 6 companies  operating in 17 from the available 20 classes, 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 on which are not taken into account  in the results, since they are already included in the corresponding  insurance classes. In the largest number of classes, IC INGO Armenia  is licensed - 16 (the only one operating in the class of water  transport insurance) and IC Rosgosstrakh Armenia - 15. (The  calculated exchange rate of the dram against the dollar as of March  31, 20 is 504.47 dr./$ 1).

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