Tuesday, September 22 2020 16:22
Karina Melikyan

Manifold growth in sales of e-CMTPL policies continues in Armenia

Manifold growth in sales of e-CMTPL policies continues in Armenia

ArmInfo.  In Armenia, the  share of online-colcludedcompulsory motor third party liability  policies (e-CMTPL) in the total number of agreements increased 3-fold  by September 2020 - up to 14% from 5% a year earlier. According to  the Armenian Motor Insurers' Bureau in January-August 2020, the  number of CMTPL contracts concluded online reached 82,690, having  increased 2.5-fold in y-o-y terms. At the same time, the total number  of concluded CMTPL contracts decreased in y-o-y terms (January-August  2020 to January-August 2019) by 16.8%, amounting to 600,271.  The  volume of insurance premiums collected on them amounted to 13 billion  drams, with a y-o-y decline of 8, 2%. And this happened amid y-o-y  decline of 2.9% in the number of vehicles with compulsory motor third  party liability insurance policy. During the reporting period, there  were 617,032 CMTPL contracts that entered into force, the number of  which decreased by 16.9% in y-o-y terms, and the volume of insurance  premiums on them amounted to 13.9 billion drams with a y-o-y decline  of 8.6%. The number of CMTPL contracts terminated during this period  decreased by 59.8% - to 11,312, under which 183 million AMD premiums  were returned or are subject to return. To note for comparison that a  year earlier, in January-August 2019, the growth of vehicles with a  CMTPL contract by 13% was accompanied by an increase in CMTPL  contracts by 33.5% (and e- CMTPL - 3.6-fold) and the volume of  collected premiums - by 25.2%.

The average insurance premium per one CMTPL contract increased by  10.4% in y-o-y terms to 21,644 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, and another reasons is  the shift of employees to a remote work during the emergency period  amid the coronavirus pandemic. 43,883 applications for insurance  compensation were submitted in January-August 2020, which is 12.4%  less than the same period in 2019. And the volume of payments on them  amounted to 9.6 billion drams, with a y-o-y decline of 4.1%.   Moreover, 17,626 applications turned out to be in cases of simplified  road traffic accidents (according to the European protocol) with a  y-o-y decline of 24.1%, for which the volume of compensations paid  amounted to AMD 1.3 billion (a y-o-y decline of 28.3%), and the  average amount of one payment was 70 984 AMD (accelerating the annual  decline to 5.5%). As for general insurance indemnities, the average  amount of one payment made 218.360 thousand drams with a y-o-y growth  of 9.4%. It should be noted 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-August 2019, the following was  recorded: an increase in claims for insurance compensation by 17.7%,  an increase in the volume of payments by 13.2% (with a decline of  3.8% in the average amount of one payment), and the number of  applications under the European protocol increased by 4.3% with an  almost unchanged volume of payments (with a 4.2% decline in the  average amount of one payment).

The loss ratio for CMTPL for January-August 2020 decreased to 61%,  while a year earlier in the same period there was an increase from  71% to 72%.

According to the results of January-August 2020, there are 550 843  vehicles with a valid CMTPL contract.  Their number in y-o-y terms  decreased by 16 640 units. In IC "Rosgosstrakh Armenia" 180 808  vehicles are insured, in Nairi Insurance - 111 335 units, in INGO  Armenia - 84 084 units, RESO - 65 457 units, Sil Insurance -58 436  units, Armenia-Insurance - 50 723 units.

It should be noted that in Armenia since March 16, as part of  measures to prevent the spread of the coronavirus pandemic, a State  of Emergency was introduced, which was extended monthly and was  lifted from September 12, while maintaining restrictive security  measures. In this regard, a temporary ban was imposed on many types  of activities in the first month of the state of emergency (including  restaurants, cafes, bars, casinos, hotels, canteens, shopping  facilities and industries not related to food and medical products).  As part of the ban, the work of public transport (including the  metro) was suspended in the republic and the movement of other  vehicles (except for taxis) was restricted, 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 activity was further expanded in order to ensure  the vital activity of the economy, and from May 18 the ban was lifted  almost completely. From the same day, public transport (including the  metro) and many catering and services facilities began to work, but  so far the activities of international air, rail, and bus  communication remain limited. But since September 2, restrictions on  entry and exit to Armenia through the air borders have been lifted,  and bans on communication only across land borders remain.

To recall, in Armenia, the system of registration of insurance claims  under the European protocol in the CMTPL market was introduced from  March 2016, initially with a threshold of damage up to 50 thousand  drams, increased to 100 thousand drams from September of the same  year, with a subsequent increase from August 2020 to 200 thousand  drams. In 2017, the transition of CMTPL 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 (Bureau Veritas Inspection Valuation Assessment and Control).  From that moment on, they began to gradually introduce: the  conclusion of insurance policies for CMTPL through a single window  platform (October 2017); On-Line sales of policies (November 2017);  purchase of policies through payment terminals with the function of  accepting cash cash-in (December 2017). And in February 2020, another  automation of the CMTPL process followed - the registration of  insurance claims under the European protocol through the ASWA mobile  application.

POST A COMMENT
Input digits     


News
Rospotrebnadzor requested additional information from competent  authorities in Armenia regarding the reason for the ban of Eskimo ice  cream Rospotrebnadzor requested additional information from competent  authorities in Armenia regarding the reason for the ban of Eskimo ice  cream 
Pashinyan discusses steps for establishing a major AI data center in  ArmeniaPashinyan discusses steps for establishing a major AI data center in  Armenia
In June,  Armenia`s annual inflation rate increased to 3.9%  driven  by higher prices for food  and servicesIn June,  Armenia`s annual inflation rate increased to 3.9%  driven  by higher prices for food  and services
Armenian products to enter Cyprus and US markets: CIBRS announces National Warehouse program strategyArmenian products to enter Cyprus and US markets: CIBRS announces National Warehouse program strategy
European Investment Bank remains Armenia`s key partner in  infrastructure projects - MinisterEuropean Investment Bank remains Armenia`s key partner in  infrastructure projects - Minister
Armenian Parliament gives  Armenian Parliament gives  "green light" to nationalization of ENA
Armenia`s dividends from ZCMC $113mln since 2022Armenia`s dividends from ZCMC $113mln since 2022
Ardshinbank summed up the raffle organized for Mastercard Business cardholdersArdshinbank summed up the raffle organized for Mastercard Business cardholders
Armenia extends ban on export of scrap metal until Feb. 1 2026 Armenia extends ban on export of scrap metal until Feb. 1 2026 
62 trucks with Armenian brandy cross Russian border 62 trucks with Armenian brandy cross Russian border 
Armenia to fix tariff quota on individual types of goods imported  from Iran Armenia to fix tariff quota on individual types of goods imported  from Iran 
Narek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for servicesNarek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for services
EIB: Education is one of key areas of partnership between EU-Armenia EIB: Education is one of key areas of partnership between EU-Armenia 
Armenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in SevilleArmenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in Seville
Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  
ADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran roadADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran road
Vassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete stepsVassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete steps
Ardshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 EventArdshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 Event
Armenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSCArmenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSC
 International Chamber of Commerce ready to assist Armenia in hosting COP-17 International Chamber of Commerce ready to assist Armenia in hosting COP-17
Armenia to extend ban on ferrous metal exportsArmenia to extend ban on ferrous metal exports
IDBank Opens a New Branch at Homplex MallIDBank Opens a New Branch at Homplex Mall
MONEYVAL experts to visit Armenia in September to assess work on money laundering control MONEYVAL experts to visit Armenia in September to assess work on money laundering control 
Goods traceability to be improved in Armenia Goods traceability to be improved in Armenia 
Vaharshapan and Khoi communities to be merged Vaharshapan and Khoi communities to be merged 
Armenian NA OKs ENA nationalization Armenian NA OKs ENA nationalization 
Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry 
Economic diversification meets Armenia`s interests - Kaja Kallas Economic diversification meets Armenia`s interests - Kaja Kallas 
5.1% increase in number of jobs in Armenia 5.1% increase in number of jobs in Armenia 
AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000
Team Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  openedTeam Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  opened
Armenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSCArmenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSC
Armenia values development of  cooperation with Denmark in  high  technology and renewable energyArmenia values development of  cooperation with Denmark in  high  technology and renewable energy
ArmSwissBank: First in Armenia to Publish a Climate Transition PlanArmSwissBank: First in Armenia to Publish a Climate Transition Plan
Ucom Launches 5G Network in Abovyan and EjmiatsinUcom Launches 5G Network in Abovyan and Ejmiatsin
Armenia`s government to be entitled to approve new vehicle purchase support programmesArmenia`s government to be entitled to approve new vehicle purchase support programmes
WB appoints Fabrizio Zarcone as its new Country Manager for ArmeniaWB appoints Fabrizio Zarcone as its new Country Manager for Armenia
Armenia`s government violating Constitution and laws by trying to expropriate ENA - lawyer Armenia`s government violating Constitution and laws by trying to expropriate ENA - lawyer 
Armenian president holds bilateral meetings in Spain Armenian president holds bilateral meetings in Spain 
RA Tourism Committee, South Caucasus Railway combine efforts to develop tourism RA Tourism Committee, South Caucasus Railway combine efforts to develop tourism 
Populism being institutionalized in Armenia - ex-official Populism being institutionalized in Armenia - ex-official 
Samvel Karapetyan`s family starts investment dispute with Armenia Samvel Karapetyan`s family starts investment dispute with Armenia 
RA Minister of Economy  discussed  Armenian cargo carriers` situation  with his Georgian counterpartRA Minister of Economy  discussed  Armenian cargo carriers` situation  with his Georgian counterpart
Expert: Armenian businesses  face obstacles  to growth due to  unfavorable conditions Expert: Armenian businesses  face obstacles  to growth due to  unfavorable conditions 
Export growth has been minimal in recent years: Luys FoundationExport growth has been minimal in recent years: Luys Foundation
Economy Ministe: Armenia  determined to realize its agricultural potential despite numerous challengesEconomy Ministe: Armenia  determined to realize its agricultural potential despite numerous challenges
Economist: Women in Armenia are more productive in business, but  their involvement remains lowEconomist: Women in Armenia are more productive in business, but  their involvement remains low
Customer Appreciation Day at IDBankCustomer Appreciation Day at IDBank
ENA Acting CEO dismisses the idea of reducing tariffs under the new manager as a mythENA Acting CEO dismisses the idea of reducing tariffs under the new manager as a myth
ENA to defend its rights within law - statement ENA to defend its rights within law - statement 
AraratBank Joins BAFT AssociationAraratBank Joins BAFT Association
No romanticism, businesses soberer now - Tigran Jrbashyan No romanticism, businesses soberer now - Tigran Jrbashyan 
More than 2/3 of Armenian entrepreneurs do business in the extractive sector and consumer servicesMore than 2/3 of Armenian entrepreneurs do business in the extractive sector and consumer services
Minister: 69 trucks with Armenian cognac heading to Russian borderMinister: 69 trucks with Armenian cognac heading to Russian border
Economy Minster  discussed upcoming tasks with  WB Country Office HeadEconomy Minster  discussed upcoming tasks with  WB Country Office Head
Papoyan: On June 27, 94 trucks carrying Armenian apricots entered Russia for exportPapoyan: On June 27, 94 trucks carrying Armenian apricots entered Russia for export
In Armenian interbank foreign exchange market, dollar transactions decreased, while ruble transactions increased June 23 to June 27, 2025In Armenian interbank foreign exchange market, dollar transactions decreased, while ruble transactions increased June 23 to June 27, 2025
Armenia, Turkey discuss opportunities for energy cooperationArmenia, Turkey discuss opportunities for energy cooperation
Overchuk: It is impossible for Armenia to be a member of both  Eurasian Economic Union and EU at the same timeOverchuk: It is impossible for Armenia to be a member of both  Eurasian Economic Union and EU at the same time
Prime Minister participates in  Supreme Eurasian Economic Council  regular meetingPrime Minister participates in  Supreme Eurasian Economic Council  regular meeting
Read more
Exchange rates
03.07.2025
RUB4.890.00
USD384.46-0.05
EUR453.471.06
GBP525.21-1.57
CAD282.961.23
JPY26.730.01
CNY53.690.05
CHF485.120.00