ArmInfo.In Armenia, the growth rate of sales of E-CMTPL policies is slowing down - from 3.6-fold in 2019 to 2.2-fold in 2020. According to the Bureau of Motor Insurers of Armenia, in 2020 the number of CMTPL agreements concluded online reached 135,452. Their share in the total number of CMTPL agreements increased from 5% in 2019 to 15% in 2020.
At the same time, the total number of concluded CMTPL contracts decreased in 2020 by 22.6%, amounting to 930,569. The volume of insurance premiums collected on them amounted to 21.1 billion drams ($ 40.3 million), with a y-o-y decline of 12.9%. And this is with a y-o-y decline of 12.4% in the number of vehicles with CMPTL policy. During the reporting year, there were 932,368 CMPTL contracts entered into force, the number of which decreased by 22.7% per annum, and the volume of insurance premiums on them amounted to 21.2 billion drams ($ 40.5 million) a y-o-y decline of 12.8%. And the number of CMPTL contracts terminated in 2020 decreased by 40.6% - to 28 787, for which 414.2 million drams ($ 792.5 thousand) premiums were returned or are subject to return. As a comparison, we note that in 2019, the growth of vehicles with CMTPL contracts by 18.5% was accompanied by an increase in CMTPL contracts by 33.2% (and e-CMTPL - 3.6-fold) and the volume of collected insurance premiums - by 23.5%.
The average insurance premium per one CMPTL contract increased in 2020 by 12.6% to 22,623 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 and the second wave of the outbreak that came in the fall, another reason was added - the transition to remote communication and customer service (during the period of emergency from March 16 to September 12, with the preservation of security measures and after the removal of the emergency).
66,619 applications for insurance compensation were submitted in 2020, which is 15.5% less than in 2019. And the volume of payments on them exceeded 14.4 billion drams ($ 27.6 million), with a y-o-y decline of 7%. Moreover, 27,956 applications turned out to be in cases of simplified registration of an accident (according to the European protocol) with a y-o-y decline of 20.6%, for which the volume of compensations paid exceeded AMD 2.05 billion (a y-o-y decline of 17.4%), and the average amount of one payment was 73 175 drams (with the release of they-o-y dynamics from the 10.7% decline to 4.1% growth). As regards general insurance indemnities, the average size of one payment made 216.774 thousand drams with a y-o-y growth of 10.1%. It is pertinent to note 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 2019, the following was recorded: an increase in claims for insurance compensation by 17%, an increase in the volume of payments by 11.6% (with a decline of 4.7% in the average size of one payment), and the number of applications under the European protocol increased by 2.2% with an 8.7% decline in the volume of payments (with a decline of 10.7% in the average size of one payment).
The loss ratio for OCMPTL decreased from 74% in 2019 to 65% in 2020. By the end of 2020, there are 527 516 vehicles in Armenia with a valid CMTPL contract. Their number on a y-o-y basis decreased by 74,741 units, and the maximum decline was recorded at INGO Armenia, and growth only at Nairi Insurance. In particular, Rosgosstrakh Armenia IC insured 172,904 vehicles (with an y-o-y decline of 11,463 units or 6.2%), in Nairi Insurance - 111,469 units (with a y-o-y growth of 2,212 units or 2%), in INGO Armenia - 78,865 units. (with a y-o-y decline of 35,016 units or 30.7%), in RESO - 63,290 units (with y-o-y decline of 10,560 units or 14.3%), in SIL Insurance - 52,768 units (with a y-o-y decline of 13 713 units or 20.6%), in Armenia-Insurance - 48 420 units (with a y-o-ydecline of 6,201 units or 11.4%).
To recall, the system of registration of insurance claims under the European protocol on the CMPTLmarket in Armenia 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. The transition to the direct compensation system started in April 2017, which made it possible to bring the process of insurance payments to a new quality level. In 2017, the transition of CMPTL processes to the system of a single window and a single platform for the insurance market under the "Armenian Single Window for Automative - ASWA" project was also launched, within the framework of an agreement concluded in 2014 with the French Bureau Veritas (Bureau Veritas Inspection Valuation Assessment and Control). From that moment: the conclusion of insurance policies for CMPTL 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-in (December 2017). And in February 2020, another automation of the CMPTL process followed - the registration of insurance claims under the European protocol through the ASWA mobile application began to be gradually introduced.