In Armenia, CMTPL electronic policies are becoming more popular among  car owners

ArmInfo. In Armenia, e-CMTPL insurance policies (e-CMTPL) are becoming more and more popular among car owners. As a result, the share of e-CMTPL in the total number of CTPL-contracts reached 13% by July 2020 from 4% a year earlier. 

According to the data of the Bureau of Car Insurers of Armenia,  according to the results of the first half of 2020, the number of  CMTPL agreements concluded online has reached 58248, having increased  2.8-fold in y-o-y terms. At the same time, the total number of MTPL  agreements concluded decreased by 13.3% year on year (H1 of 2020  versus H1 of 2019), amounting to 440 526. The volume of insurance  premiums collected on them amounted to 9.4 billion drams, with a  y-o-y decline of 7.4% . And this amid insignificant y-o-y decline -  by only 0.9% - of the number of vehicles with an insurance policy. To  note for comparison, that a year earlier - in the first half of 2019,  the growth of vehicles with compulsory motor insurance by 11.8% was  accompanied by an increase in compulsory motor insurance by 32.9%  (and e-compulsory motor insurance - 3.8-fold) and the volume of  collected insurance premiums - by 25.3%.

The average size of the insurance premium for one CMTPL agreement  increased in y-o-y terms by 6.8% to 21 362 drams. According to  ArmInfo analysts, the main factor behind the high popularity of  e-MTPL is the discount applied when concluding contracts online, 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 August 12, which was extended for the  fourth time.

Applications for insurance compensation were submitted in the first  half of 2020 33,401, which is 10.5% less than the same period in  2019. And the volume of payments on them amounted to 7.2 billion  drams, with a y-o-y decline of 2.5%. Moreover, 13,512 applications  turned out to be in cases of simplified registration of road  accidents (according to Europrotocol) with an annual decline of  22.9%, for which the volume of compensations exceeded AMD 955.9  million (annual decline of 27.1%), and the average amount of one  payment was 70 AMD 748 (annual decline of 5.5%).

The CMTPL loss ratio for the first half of 2020 decreased to 59%,  while a year earlier in the same period an increase was recorded from  70% to 73%.

According to the results of the first half of 2020, there are 541,784  vehicles in Armenia with the valid CMTPL agreement. Their number in  y-o-y terms decreased by 4926 units. 175 919 vehicles were insured in  Rosgosstrakh Armenia Insurance Company, 107,461 units in Nairi  Insurance, 84,285 units in INGO Armenia, 65,711 units in RESO, 60,811  units in Sil Insurance, and 48 190 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   has been introduced, which will last until August 12 inclusive. In  this regard, many types of 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). 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.

It should be recalled that in Armenia, the system of registration of  insurance claims for Euro-protocol in the CMTPL market was introduced  in 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 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, the following 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 insurance claims on the Euro  protocol through the ASWA mobile application.