ArmInfo. In 2020, the shares of retail and corporate components in premium portfolios of Armenian insurers almost equalized - 50.3% (22.4 billion drams) and 49.7% (22.1 billion drams), against 52.8% and 47.2%, respectively. earlier. According to the Financial Rating of Insurance Companies in Armenia, prepared by ArmInfo IC, the retail insurance market capacity dropped by 13.6% from 22.1% growth a year earlier, along with which the dynamics of corporate insurance worsened - from 17.3% to 4.5% decline.
At the end of 2020, corporate insurance prevails in the premium portfolios of two companies - INGO Armenia and Sil Insurance, while the other four, on the contrary, are dominated by retail. The largest gap between corporate and retail insurance was recorded by INGO Armenia IC - 69% versus retail 31%, and the smallest gap was recorded by Seal Insurance IC - 53.7% versus retail 46.3%. In terms of the dominance of the retail component, the largest gap was shown by IC RESO - 66.8% versus corporate 33.2%, and the smallest gap, and almost the same, was recorded by IC Nairi Insurance (54% / 46%). A year earlier, in 2019, INGO Armenia (60.4%) also distinguished itself as the largest dominant of the corporate portfolio in premiums, while Armenia Insurance was the leader in terms of the retail component in premiums (65.7%).
In the structure of insurance claims, the share of payments to retail clients accounted for 66.1% or 15.3 billion drams, corporate - 33.9% or 7.9 billion drams, against almost the same 67.7% and 32.3% respectively a year earlier. At the same time, the deterioration in the annual dynamics was observed both in compensations to legal entities - from 11% growth to 3% decline, and in payments to individuals - from 9% growth to 9% decline. The only insurance company, in which the corporate component dominated in the portfolio of indemnities at the end of 2020, was INGO Armenia - 55.6% against retail 44.4%. And of the other five companies, Rosgosstrakh Armenia IC has distinguished itself as the largest dominant in the retail component.
- 86.6% against corporate 13.4%, and the smallest IC "Seal Insurance" - 53.5% against corporate 46.5%. As a comparison, we note that at the end of 2019, all six insurance companies in the portfolio of compensations were dominated by the retail component, with the largest disproportion in Rosgosstrakh Armenia - 91.2% versus corporate 8.8%, and the smallest in INGO Armenia - 50. 8% versus corporate 49.2%.
In the structure of premiums listed for reinsurance, the share of corporate insurance at the end of 2020 amounted to 89.7% or 6.6 billion drams (with a reversal of the annual dynamics from 45% growth to 5% decline), and retail - 10.3% or 758.4 million drams (with an acceleration of annual growth from 22% to 28%), against 92.1% and 7.9%, respectively, a year earlier. The largest dominant of the corporate component in the premiums listed for reinsurance was recorded in Armenia Insurance IC - 95.7% versus retail 4.3%, and the smallest in Seal Insurance IC - 79.9% versus retail 20.1%. A year earlier, the largest gap was also shown by the insurance company "Armenia Insurance" (96.6% / 3.4%), and the smallest also had the IC "Seal Insurance" - 78.7% against retail 21.3%.
Armenian insurers signed 351,380 contracts in the IV quarter of 2020, which is 31.6% less than the number of contracts a year ago (against 30.4% growth a year earlier). Thus, the number of insurance contracts in force on January 1, 2021 amounted to 842,236 with an annual decline of 13.7% (against an 18% growth in 2019). Among the classes, the leading position in terms of the number of concluded agreements is held by OSAGO - in the IV quarter over 235.4 thousand, the number of existing agreements under which exceeded 498.6 thousand by January 1. Of the voluntary types of insurance, the most demanded is accident insurance, under which in the IV quarter, 77.3 thousand contracts were concluded, and the number of existing ones by January 1 exceeded 230.2 thousand.And in the next position in terms of demand, instead of traditionally occupying medical insurance, property insurance was placed, according to which the number of existing contracts reached 55 thousand by January 1 , of which 16.2 thousand were concluded in the IV quarter.
In terms of the number of agreements valid by January 1 in the OSAGO segment, Rosgosstrakh Armenia is the leader - 163.4 thousand (of which 76.1 thousand were concluded in the IV quarter). And the largest number of agreements on accident insurance and property insurance is distinguished by INGO Armenia - 101.5 thousand and 28.1 thousand, respectively, in force as of January 1 (of which 53.2 thousand and 8.6 thousand were concluded in the IV quarter ). In terms of CASCO, the championship is held by "Nairi Insurance" (4.7 thousand contracts in force on January 1, of which 1.2 thousand were concluded in the IV quarter). INGO Armenia and Rosgosstrakh Armenia are the leaders in insurance of those traveling abroad with almost equal numbers, which had 1.6 thousand contracts by January 1 (of which 954 and 599 were concluded in the IV quarter, respectively).
In terms of the number of contracts concluded in the 4th quarter, INGO Armenia IC ranks first - 99.7 thousand, Rosgosstrakh Armenia IC - 99.3 thousand - second, Nairi Insurance IC - 57.3 thousand - third. the fourth - IC "RESO" - 39.9 thousand, the fifth - IC "Armenia Insurance" - 27.9 thousand, the sixth IC "Seal Insurance" - 27.4 thousand. For all six companies, the dominant in the concluded contracts falls on OSAGO with a maximum for Armenia Insurance (89.8%) and a minimum for INGO Armenia (33.4%). The largest decline in the number of contracts concluded for the quarter was recorded for travel insurance (by 88%), and the most significant reduction in the number of contracts in force on January 1 (by 73.1%) appears in this class. The decline in both the contracts concluded during the quarter and the contracts valid as of the reporting date was also recorded in the insurance of cargo transportation - by 29.7% and 28.5%, respectively. A noticeable decline in contracts concluded for the quarter is also seen in general liability insurance (by 53.5%) and OSAGO (by 34%). Only two classes remained on the rise in terms of contracts concluded in the quarter - air transport insurance (by 60%) and CASCO (by 5%), but in terms of the number of contracts in force at the reporting date, these classes, along with the rest, were in decline.
Let us remind that there are 6 companies operating in the insurance market of Armenia, operating out of the available 20 classes of 17, with the exception of insurance of railway transport, liability from the use of railway transport, insurance of judicial and extrajudicial expenses. Since 2019, in the financial reports on the portfolio, at the request of the Central Bank of Armenia, the line of insurance of seismic risks (against earthquakes) has been added, and since the 2nd quarter of 2020, the line of insurance of agricultural risks (agricultural insurance) has been added, the data on which are not taken into account in the totals, since they are already included in the corresponding classes insurance. In terms of the largest number of classes, IC "INGO Armenia" is licensed - 16 (the only one operating in the class of water transport insurance) and IC "Rosgosstrakh Armenia" - 15. (Estimated exchange rate of AMD to USD per 12/31/2020 is AMD 522.59 / $ 1).