Certificates of insurance of e-CMTPL have grown several-fold in  Armenia

ArmInfo. In Armenia, the share of electronic CMTPL (e- CMTPL) certificates of insurance in the total number of contracts increased 3-fold by August 2020 - up to 13% from 4% a year earlier.

According to the Bureau of Motor Insurers of  Armenia, in January-July 2020, the number of CMTPL contracts  concluded online reached 69,821, having increased 2.6-fold on a y-o-y  basis. At the same time, the total number of concluded CMTPL  agreements decreased on a y-o-y basis (January-July 2020 to  January-July 2019) by 15.2%, amounting to 518,488. The volume of  insurance premiums collected on them amounted to AMD 11.2 billion,  with a y-o-y decline of 7. 8%. And this is with a meager y-o-y  decline - only by 1.5% - in the number of vehicles with a compulsory  motor third party liability insurance certificate. During the  reporting period, there were 534,757 CMTPL contracts entered into  force, the number of which decreased by 15.6% in y-o-y terms, and the  volume of insurance premiums on them amounted to 12.1 billion drams  with a y-o-y decline of 8.5%. The number of CTPML contracts  terminated during this period decreased by 59.4% - to 8,869, for  which 142.7 million AMD premiums were returned or are subject to  return. To note for comparison that a year earlier, in January-July  2019, the growth of vehicles with a CMTPL agreement by 11.9% was  accompanied by an increase in CMTPL contracts by 32.6% (and e-CMTPL  insurance - 3.6-fold) and volume of collected insurance premiums - by  24.6%.

The average insurance premium per one CTMPL contract increased by  8.7% year on year to 21,528 drams.  According to ArmInfo analysts,  the main factor in such a high popularity of e-CMTPL is the discount  applied (5%) when concluding contracts online, to which, in the  context of the coronavirus pandemic, another reason was added - the  transfer of employees to remote work during the state of emergency  period starting from March 16 and extended for the fifth time to  September 11.

38,655 applications for insurance compensation were submitted in  January-July 2020 , which is 10.8% less than the same period in 2019.  And the volume of payments on them amounted to 8.4 billion drams,  with an annual decline of 2.5%. Moreover, 16,026 applications were  submitted in cases of simplified registration of road accidents  (according to the European protocol) with a y-o-y decline of 21.8%,  for which the volume of compensations paid amounted to AMD 1.1  billion (a y-o-y decline of 27.8%), and the average amount of one  payment was 68 515 drams (with an acceleration of the y-o-y decline  to 7.7%). As for general insurance indemnities, the average amount of  one payment made 217.628 thousand AMD with a y-o-y growth of 9.3%. It  is noteworthy that since August 2020, a higher threshold of damage -  200 thousand drams (against the previous 100 thousand drams) came  into force for insured events under the European protocol. A year  earlier, in January-July 2019, the following was recorded: an  increase in claims for insurance compensation by 18.7%, an increase  in the volume of payments by 14.1% (with a decline of 3.9% in the  average amount of one payment), and the number of applications under  the European protocol increased by 5.7% with an increase in the  volume of payments by only 0.2% (with a decline of 5.2% in the  average amount of one payment).

The loss ratio for CTMPL in January-July 2020 decreased to 60%, while  a year earlier in the same period, an increase was recorded from 69%  to 72%.  As of January-July 2020, there are 548,269 vehicles in  Armenia with a valid CMTPL contract. Their number in y-o-y terms  decreased by 8,593 units. In IC "Rosgosstrakh Armenia" 179 047  vehicles are insured, in Nairi Insurance - 109 624 units, in INGO  Armenia - 84 367 units, RESO - 64 995 units, Sil Insurance - 60 095  units, in Armenia-Insurance - 50 141 units.

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 September 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.