Saturday, January 23 2021 14:54
Karine Melikyan

In Armenia, growth rate of sales of E-CMTPL policies slows down  against background of a decrease in number of insured cars

In Armenia, growth rate of sales of E-CMTPL policies slows down  against background of a decrease in number of insured cars

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. 


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