Wednesday, September 2 2020 19:25
Karine Melikyan

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

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. 


News
Gazprom Armenia returned to the leading position in the list of large  taxpayersGazprom Armenia returned to the leading position in the list of large  taxpayers
Telecommunications operators of Armenia for 9 months of 2021  increased tax payments to the state treasury by 16.3%Telecommunications operators of Armenia for 9 months of 2021  increased tax payments to the state treasury by 16.3%
PSRC Head: If the negotiations are concluded successfully, the water  tariff will be increased by only 20 drams PSRC Head: If the negotiations are concluded successfully, the water  tariff will be increased by only 20 drams 
EDB: Consumer demand recovery slows down in Armenia, further rate  hikes are possibleEDB: Consumer demand recovery slows down in Armenia, further rate  hikes are possible
Head of regulator refrains from confirming whether there will be  increase in gas and electricity tariffs in 2022Head of regulator refrains from confirming whether there will be  increase in gas and electricity tariffs in 2022
EEC intends to reach 93.6% in terms of food security by 2022EEC intends to reach 93.6% in terms of food security by 2022
Head of PSRC: Frequent power outages are not a consequence of the  post-war situationHead of PSRC: Frequent power outages are not a consequence of the  post-war situation
The USA finally determined the duties on the import of aluminum foil  from Armenia and a number of other countriesThe USA finally determined the duties on the import of aluminum foil  from Armenia and a number of other countries
 Ministry of Finance: Most of the purchases from one supplier are  carried out by the healthcare system  Ministry of Finance: Most of the purchases from one supplier are  carried out by the healthcare system 
Courts will consider complaints about violations during public  procurement auctionsCourts will consider complaints about violations during public  procurement auctions
Dmitry Volvach: Russia is investing over $ 1 billion in the Armenian  economyDmitry Volvach: Russia is investing over $ 1 billion in the Armenian  economy
Minister: Development of decentralized interregional cooperation is a  priority task of the Armenian governmentMinister: Development of decentralized interregional cooperation is a  priority task of the Armenian government
Is it realistic to maintain the current gas price? Deputy Prime  Minister of Armenia explained Is it realistic to maintain the current gas price? Deputy Prime  Minister of Armenia explained 
RA Economy Minister discussed Armenia`s investment potential with  U.S. Ambassador RA Economy Minister discussed Armenia`s investment potential with  U.S. Ambassador 
Armenia and Russia have developed common approaches to attracting  investmentArmenia and Russia have developed common approaches to attracting  investment
32nd energy charter conference ministerial meeting to be held in  Yerevan32nd energy charter conference ministerial meeting to be held in  Yerevan
Veronika Nikishina: REC Group is interested in close cooperation  with Armenia in a wide range of integration projectsVeronika Nikishina: REC Group is interested in close cooperation  with Armenia in a wide range of integration projects
For 9 months of 2021, public debt of Armenia increased by $ 1.069  billionFor 9 months of 2021, public debt of Armenia increased by $ 1.069  billion
Joint Project of HSBC Group and Orran Benevolent Organisation Supports 200 Young People in Regions to Get Jobs and Start their BusinessJoint Project of HSBC Group and Orran Benevolent Organisation Supports 200 Young People in Regions to Get Jobs and Start their Business
Armenian NPP connected to RA unified power grid since October 17Armenian NPP connected to RA unified power grid since October 17
Leadership of SRC of Armenia will be sent to MoscowLeadership of SRC of Armenia will be sent to Moscow
Russia`s trade representative: Armenian market is traditionally attractive for RussiaRussia`s trade representative: Armenian market is traditionally attractive for Russia
5th meeting of Armenian-Czech Intergovernmental Commission on  Economic Cooperation held in Yerevan5th meeting of Armenian-Czech Intergovernmental Commission on  Economic Cooperation held in Yerevan
Make payments via Idram in online stores, get free delivery or a cashback and take part in the drawMake payments via Idram in online stores, get free delivery or a cashback and take part in the draw
Interest rates on loans and deposits have grownInterest rates on loans and deposits have grown
In Moscow, Suren Papikyan discussed issues related to In Moscow, Suren Papikyan discussed issues related to "North-South  Power Corridor" and construction of a new nuclear power unit in  Armenia 
Armenian Minister of Economy received Deputy Minister of Industry and  Trade of Czech RepublicArmenian Minister of Economy received Deputy Minister of Industry and  Trade of Czech Republic
Issue of feasibility of creating institution of business ombudsman is  being discussed at RA Economy Ministry Issue of feasibility of creating institution of business ombudsman is  being discussed at RA Economy Ministry 
Armenia is ready to cooperate in developing common approach to  protect EAEU internal market in case of pressure from third partiesArmenia is ready to cooperate in developing common approach to  protect EAEU internal market in case of pressure from third parties
Armenian government approves draft decision on increasing ANIF  authorized capitalArmenian government approves draft decision on increasing ANIF  authorized capital
Pashinyan: Formation of the common energy market of the EAEU is a  prerequisite for the full realization of the potential of economic  integrationPashinyan: Formation of the common energy market of the EAEU is a  prerequisite for the full realization of the potential of economic  integration
Official supplier of furniture for shops of number of world brands  and a pharmaceutical company received tax incentive from RA  Government Official supplier of furniture for shops of number of world brands  and a pharmaceutical company received tax incentive from RA  Government 
Water users will be reimbursed for rent for irrigation water for a  period of 5 years in the event of the introduction of drip irrigation  systems on an area of up to 3 hectaresWater users will be reimbursed for rent for irrigation water for a  period of 5 years in the event of the introduction of drip irrigation  systems on an area of up to 3 hectares
RA Minister of Economy did not rule out that Standard & Poor`s would assign credit rating to RA Minister of Economy did not rule out that Standard & Poor`s would assign credit rating to "Export Insurance Agency of Armenia" CJSC
S&P Improved the Outlook on Ameriabank to Positive S&P Improved the Outlook on Ameriabank to Positive 
S&P improves forecast for 2021 on Real GDP Growth in Armenia to 6.3%S&P improves forecast for 2021 on Real GDP Growth in Armenia to 6.3%
Expert: Building a 600 MW reactor would be the most appropriate  option for ArmeniaExpert: Building a 600 MW reactor would be the most appropriate  option for Armenia
Expert: It is reasonable to use stock exchanges for the formation of  market-based gas prices Expert: It is reasonable to use stock exchanges for the formation of  market-based gas prices 
Head of Ministry of Territorial Administration got acquainted with  work of  Agarak Copper-Molybdenum CombineHead of Ministry of Territorial Administration got acquainted with  work of  Agarak Copper-Molybdenum Combine
IMF stands ready to assist Government of Armenia in implementing its  ambitious reform agendaIMF stands ready to assist Government of Armenia in implementing its  ambitious reform agenda
Standard & Poor`s assigns sovereign rating to Armenia for the first  timeStandard & Poor`s assigns sovereign rating to Armenia for the first  time
Global Finance Names Ameriabank the Safest Bank in ArmeniaGlobal Finance Names Ameriabank the Safest Bank in Armenia
Revenue of the trade sector of Armenia for 8 months of 2021 exceeded  $ 4 billionRevenue of the trade sector of Armenia for 8 months of 2021 exceeded  $ 4 billion
Armenia will allocate more for military spending in 2022 than in  2021, but less than for servicing and paying off government debtArmenia will allocate more for military spending in 2022 than in  2021, but less than for servicing and paying off government debt
Armenia and Poland intend to intensify cooperation between startups  of two countriesArmenia and Poland intend to intensify cooperation between startups  of two countries
Global Finance names AraratBank the Best Sub-Custodian Bank in ArmeniaGlobal Finance names AraratBank the Best Sub-Custodian Bank in Armenia
Armenian government delegation to take part in Russian Energy WeekArmenian government delegation to take part in Russian Energy Week
Armenia participates in Europe`s largest trade fair for food within  EU4Business initiativeArmenia participates in Europe`s largest trade fair for food within  EU4Business initiative
Ambassador: Sweden welcomes the readiness of the Armenian government  to carry out systemic reformsAmbassador: Sweden welcomes the readiness of the Armenian government  to carry out systemic reforms
Gnel Sanosyan and Kishan Dan Dewal discussed the North-South  investment program and the possibilities of the Iranian port of  ChabaharGnel Sanosyan and Kishan Dan Dewal discussed the North-South  investment program and the possibilities of the Iranian port of  Chabahar
EIB stands ready to support the efforts of the Armenian government to  improve the business environmentEIB stands ready to support the efforts of the Armenian government to  improve the business environment
Minister of Economy took part in opening of PanArmenian Expo 2021  12th International Exhibition- ForumMinister of Economy took part in opening of PanArmenian Expo 2021  12th International Exhibition- Forum
Ambassador: Economic cooperation between Armenia and Slovenia does  not correspond to the existing potentialAmbassador: Economic cooperation between Armenia and Slovenia does  not correspond to the existing potential
Draft state budget: In 2022, Armenia will increase its national debt  by another $ 1.053 billion - to about $ 10.2 billionDraft state budget: In 2022, Armenia will increase its national debt  by another $ 1.053 billion - to about $ 10.2 billion
ANIF starts cooperation with Italian Intesa Sanpaolo group ANIF starts cooperation with Italian Intesa Sanpaolo group 
Tigran Khachatryan and Carolin Geginat discussed prospects of  cooperation between  RA Government and World BankTigran Khachatryan and Carolin Geginat discussed prospects of  cooperation between  RA Government and World Bank
Production of brandy became leader in terms of volume in Armenia`s  alcoholic industry, and whiskey production is leader in terms of  growth ratesProduction of brandy became leader in terms of volume in Armenia`s  alcoholic industry, and whiskey production is leader in terms of  growth rates
Freight and passenger transportation reaches double-digit growth  in ArmeniaFreight and passenger transportation reaches double-digit growth  in Armenia
Telecommunications revenue in Armenia increased by 4.8% in 8 months  of 2021Telecommunications revenue in Armenia increased by 4.8% in 8 months  of 2021
Head of Central Bank of Armenia met with President of Council of  Ministers of ItalyHead of Central Bank of Armenia met with President of Council of  Ministers of Italy
Read more


Exchange rates
20.10.2021
RUB6.71-0.03
USD476.55-0.79
EUR553.94-2.88
GBP656.26-3.04
CAD385.90-1.58
JPY41.63-0.21
CNY74.380.15
CHF515.80-3.78