Over the year, the volume of indemnities of Armenian insurers  decreased by 4.7%

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).