ArmInfo. In Armenia, sales of TPL electronic policies are growing rapidly, the share of which in the total number of TPL agreements by June 2020 increased to 13% from 4% a year earlier. According to the data of the Auto Insurers Bureau of Armenia, according to the results of January-May 2020, the number of TPL-agreements concluded in the online mode reached 45504, having increased 3 times in annual terms.
At the same time, the total number of concluded TPL-contracts decreased in annual terms (January-May 2020 to January-May 2019) by 12.9%, amounting to 360,283. The volume of insurance premiums collected on them amounted to 7.6 billion drams, with an annual decline of 8, 7%. The average insurance premium per TPL-contract increased by 4.8% on an annualized basis to 21,206 drams. According to analysts at ArmInfo, the main factor behind such a high activity of concluding TPL agreements online is the discount applied, but in the context of the coronavirus pandemic, another reason was added - the transfer of employees to remote work during the state of emergency from March 16 to July 13.
Applications for insurance compensation were submitted on the results of January-May 2020 28 110, which is 11% less than the same period in 2019. And the volume of payments on them amounted to 6.1 billion drams, with an annual decline of 2.6%. Moreover, 11,511 applications turned out to be in cases of simplified registration of road accidents (according to Europrotocol) with an annual decline of 22.8%, for which the volume of compensations paid amounted to 812 million drams (annual decline of 27.4%), and the average size of one payment was 70 540 drams (annual decline of 6%).
The TPL loss ratio for January-May 2020 was 58%, compared to 76% in the same period of 2019. According to the results of January-May 2020, there are 541 351 vehicles with a valid TPL-agreement in Armenia. Their number in annual terms increased by only 1.1% or by 5,824 units. 174,581 vehicles were insured in Rosgosstrakh Armenia Insurance Company, 105,632 units in Nairi Insurance, 85422 units in INGO Armenia, 66431 units in RESO, 61917 units in Force Insurance, 47368 units in Armenia-Insurance. It should be noted that since March 16, as part of measures to prevent the spread of the coronavirus pandemic, a State of Emergency (PE) has been introduced, which will last until July 13 inclusive. In connection with this, a temporary ban was imposed on many types of activities in the first month of emergency (including restaurants, cafes, bars, casinos, hotels, canteens, retail facilities and industries not related to food and medical products). As part of the ban, public transport (including the metro) was suspended in the republic and the movement of other vehicles (except for taxis) was restricted, and international aviation, rail and bus services were limited. The ban was partially lifted in the second half of April, then from May 4 the list of permitted types of economic activities was further expanded to ensure the vital functions of the economy, and from May 18 the ban was lifted almost completely. From the same day, public transport (including the metro) and many public catering facilities and services began to operate, but so far the activities of international air, rail, and bus services have been limited. According to the Bureau of Auto Insurers, in January-May 2019, the number of online TPL-contracts increased by 3.6 times year-on-year to 15,151 (or 4% in total, against 1.4% a year earlier). At the same time, the total number of concluded TPL-agreements increased by 33.6% over the year, amounting to 413 604, and the volume of insurance premiums collected on them increased by 26.2% to AMD 8.4 billion. The average size of insurance premiums per TPL-contract decreased by 5.5% over the year - to 20226 drams. Applications for insurance compensation were submitted for January-May 2019 31595 (an increase of 21.7% yoy), and the volume of payments on them amounted to 6.2 billion drams (an increase of 12.8% yoy). Moreover, 14917 applications turned out to be in cases of simplified registration of road accidents (according to the Euro protocol), for which compensations in the amount of 1.1 billion drams were paid, and the average size of one payment amounted to 75012 drams. The TPL loss ratio for January-May 2019 was 76%, against 69% a year earlier. According to the results of January-May 2019, there were 535527 vehicles with a valid TPL agreement in Armenia (annual growth of 9.4% or 46181 units). It should be noted that in Armenia the system of registration of insured events by Euro-protocol in the TPL market was introduced since March 2016, initially with a damage threshold of up to 50 thousand drams, subsequently in September of the same year increased to 100 thousand drams. And in 2017, work began on the transition of TPL processes to a single-window system and a single platform for the insurance market under the project "Armenian Single Window for Automative - ASWA", under an agreement concluded in 2014 with the French Bureau Veritas Inspection Valuation Assessment and Control). And from that moment, such features began to be phased in: conclusion of insurance policies on TPL 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, the next automation of the TPL process followed - registration of insurance claims on the Euro protocol through the ASWA mobile application.