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.