ArmInfo. For the first half of 2020, Armenian insurers reimbursed 11.3 billion drams or $ 23.4 million in different classes (the figures are given from the reports of IC portfolios according to the standards of the Central Bank of Armenia). In y-o-y terms, insurance claims declined by 4.7%, against an increase of 9.8% a year earlier. The same deterioration in the y-o-y dynamics was demonstrated by insurance premiums - from an 18.7% growth to a 7.7% decline, amounting to 24.3 billion drams or $ 50.3 million.
According to the Financial Rating of Insurance Companies of Armenia, prepared by ArmInfo IC, the y-o-y growth of payments was observed for three companies - 2-13.3% (maximum by Armenia Insurance), and the other three reduced indemnities by 1.6-15.8% (INGO Armenia at most). A year earlier, in the same period, payments from five companies, including Armenia Insurance (6.5%) and INGO Armenia (11.3%), were in growth, and the only decline was recorded in RESO (4.1%).
In terms of insurance classes, the most significant drop was observed in payments for insurance of cargo transportation - by 93.7% (versus 5.4-fold growth a year earlier) and travel insurance - by 45.4% (versus 1.2% growth a year earlier), which is understandable in the situation of the state of emergency introduced on March 16 and still in force due to the coronavirus pandemic, with the concomitant restriction of international air, rail, and bus services.
The deterioration of the y-o-y dynamics was also demonstrated by payments for compulsory motor third party liability insurance: from 13.4% growth to 4.2% decline. Indemnities for full comprehensive insurance also remained in decline, but with a significant slowdown in y-o-y rates, - from 16.7% to 8.6%, for liability insurance from the use of vehicles- from 70.9% to 31.6%, and property insurance - from 71.8% to 14.8%. The growth was significantly weakened from 11.2% to 1.2% of reimbursement for medical insurance. There was also a sharp slowdown in the growth of the volume of reinsurance for medical insurance - from 19.5-fold to 31%.
Nevertheless, payments for general liability insurance - 90.1% and financial damage - 63.1% showed significant growth, while a year earlier these two classes recorded a decline - 83.8% and 49.9%, respectively. And only accident insurance payments accelerated the upward trend from 22.1% to 27.8%.
According to a new class - insurance of agricultural risks, according to which insurance companies began to work only from this year, the volume of payments for the first half of the year amounted to 8.4 million drams. Moreover, only three insurance companies act as partners in the agricultural insurance project - Rosgosstrakh Armenia, INGO Armenia and Sil Insurance. The project is still in pilot mode, and the purchase of policies is subsidized by the state in the amount of 50-60%. In general, no payments were recorded for credit risk insurance, for insurance of air transport and liability for its use, water transport and liability for its use, and for insurance of guarantees provided. Rosgosstrakh-Armenia IC holds the lead in terms of the volume of insurance payments for the first half of 2020 - 3.5 billion drams. The second place is taken by INGO Armenia IC with the volume of reimbursements of 2.5 billion drams. The TOP-3 is closed by the IC "Nairi Insurance" with the volume of payments of 1.8 billion drams. Sil Insurance IC is close to them with 1.6 billion drams. IC "RESO" moved up to the fifth position with the volume of payments of 1.1 billion drams. And the list of insurance companies is closed by "Armenia Insurance" IC with 876.5 million drams.
The largest share of payments in the structure of compensations is traditionally held by CTPML - 60.3% or 6.8 billion drams, against 59.9% a year earlier. The second position in terms of share in the structure of payments is held by medical insurance- 32.5% or 3.7 billion drams, against 30.6% a year earlier. The third position belongs to full comprehensive insurance, whose share in the structure of payments decreased over the year from 4.2% to 4%. Then, in terms of the share in the structure of payments follows insurance: on financial damage - 1.5% (against 0.9% a year earlier), against accidents - 0.5% (against 0.4% a year earlier), property - 0.4% (against 0.5% a year earlier), general liability insurance - 0.32% (against 0.2% a year earlier), insurance for people traveling abroad - 0.26% (against 0.5% a year earlier). A decrease in the share in the structure of payments was also recorded for cargo transportation insurance from 1.8% to 0.1%.
In the first half of 2020, Armenian insurance companies recorded a total of 141 thousand insured events (with a y-o-y decline of 9.2%), of which the majority fell on medical insurance - 107.4 thousand cases (with a y-o-y decline of 8.4%). %). Under the CTPML, insurers recorded 32.3 thousand insured events (with a y-o-y decline of 11.5%). In terms of the number of cases, the insurance of land transport (fully comprehensive insurance) is in third place - 706 cases (with a y-o-y decline of 18.9%), and in fourth place is insurance for people traveling abroad - 184 cases (with a y-o-y decline of 51.6%). It should be reminded that 6 companies operate in the insurance market of Armenia, operating in 17 out of the available 20 classes, with the exception of railway transport insurance, liability from the use of railway transport, insurance of judicial and extrajudicial expenses. There are 2 compulsory types of insurance practiced on the market - CTPML and medical insurance for state employees.
Since 2019, at the request of the Central Bank of Armenia, the line of insurance of seismic risks (against earthquakes) has been added to the portfolio of financial reports for all 6 ICs, the data on which, although separately indicated, are not included in the totals, since they are already included in the corresponding classes of insurance.
Since 2020, the agricultural risk insurance class has also been added, the data for which are indicated in a separate line, but are also taken into account in two other classes (property insurance against fires and natural disasters, property insurance against other damages). In terms of the largest number of classes, INGO Armenia IC is licensed - 16 and Rosgosstrakh Armenia IC - 15. (The estimated exchange rate of the dram to the dollar as of June 30, 2020 was 482.36 AMD / $ 1).