Membership in international Green Card system and broad cooperation  within CIS countries -these are the goals of Armenian Motor Insurers`  Bureau

ArmInfo.The Bureau of Auto Insurers of Armenia celebrates its 10th anniversary in September. By that date, the Bureau issued a progress report and presented in  figures the achievements on the main indicators. As ArmInfo was told  in the press service of the Bu Armenian Motor Insurers' Bureau, the  Bureau's long-term plans include membership in the international  Green Card system and broad cooperation within the framework of the  CIS countries. In the medium term, it is planned to liberalize  insurance premiums either with the establishment of maximum and  minimum thresholds, or without the need for them.

The formation of a  real market for spare parts and a competitive market for auto repair  shops is also considered.

According to the Bureau, in 2011-2019, the number of insured vehicles  increased 3-fold - up to 602,457 units, and in the H1 of 2020,  541,784 units vehicles were insured. (A decrease by 4.9 thousand in  an annualized context, most likely, was due to the coronavirus  crisis, Ed. note).

The volume of insurance premiums almost doubled in 2011-2019 - to  24.2 billion drams, and in the H1of 2020 amounted to 10.3 billion  drams. But more impressive growth was demonstrated by the volume of  insurance claims: in 2011-2019, 2.8-fold  - up to 15.5 billion drams  (excluding reserves), and taking into account reserves, this figure  increased 2.3-fold- up to 16.4 billion drams. In the H1 of 2020, the  volume of insurance claims amounted to 7.2 billion drams (excluding  reserves) or 6.5 billion drams (including reserves).

At the same time, the average amount of compensation from the maximum  223 392 drams in 2011 decreased to 196 891 drams in 2019, climbing to  215 950 drams in the H1 of 2020. On a y-o-y basis, a sharp increase  in this indicator was observed in 2015 and 2018, and the largest  decline was in 2012 and 2016, but the minimum level of the average  amount of compensation was recorded in 2013 - 194 356 drams.

The number of settled claims for compensation in 2011-2019 increased   more than 3-fold- from 25 313 to 78 880, and in the H1 of 2020 there  were 33 401. Moreover, the y-o-y increase in their number began to be  observed in 2016, due to the reform of insurance procedures towards  simplification and greater accessibility using online platforms.

The loss ratio of CMPTL for 2011-2019 increased from 55.1% to 73.9%.  At the end of the H1 of 2020, the loss ratio has already reached 59%,  taking into account the pandemic, and may increase by the end of the  year.

As of June 30, 2020, 449,896 policyholders have a valid CMPTL  contract, the classification of which according to the accident-free  rate (BMC- bonus-malus coefficient) is as follows: 68% or 306,193  policyholders have been assigned the bonus class, 15% or 66,977  policyholders - the class Malus, and the remaining 17% or 76,726 of  policyholders fall under the base class.

Over the 10 years since the introduction of compulsory car insurance  in Armenia, many steps have been taken to improve not only this  segment, but also the insurance market as a whole. So, since March  2016, a system of registration of insurance claims under the European  protocol with a threshold of damage up to 50 thousand drams was  introduced in the CMPTL market of Armenia, which was subsequently  increased to 100 thousand drams in September of the same year, and  another increase to 200 thousand drams from August 2020.

Since September 2016, the minimum and maximum thresholds for y-o-y  insurance policies of CMPTL have been established, with a  classification by engine power and types of vehicles. At the same  time, a classification scale of risk levels according to the  bonus-malus system was introduced. In 2017, the transition of CMPTL  processes to a single window system and a single platform for the  insurance market began under the "Armenian Single Window for  Automative - ASWA" project, within the framework of an agreement  concluded in 2014 with the French Bureau Veritas Inspection Valuation  Assessment and Control.

From that moment on, the gradually introduce was began: a system of  direct indemnities - in case of an insured event, the victim receives  an indemnity from his insurance company, which later returns its  amount by recourse from the insurance company where the car that  caused the damage is insured (April 2017); conclusion of insurance  policies for CMPTL through a single window platform (October 2017);  On-Line sale of policies with a 5% discount (November 2017); purchase  of policies through payment terminals with cash-in function (December  2017). In February 2020, another automation of the CMPTL process  followed - the registration of insurance claims under the European  protocol through the ASWA mobile application.  Thus, the CMTPL  processes have been transferred to a new level of standards and  automation - to a single window system and a single ASWA platform.