FinRating ArmInfo: Reimbursements for insurance of freight going  abroad, medical insurance and compulsory motor third party liability  insurance have gone into decline

ArmInfo. For 2020, Armenian insurers reimbursed 23.2 billion drams or $ 44.4 million in different classes (figures are given from the reports of IC portfolios  according to the standards of the Central Bank of Armenia).

In the reporting year, insurers' indemnities decreased by 7.3%, after a  slowdown in growth in 2019 to 9.7% from 28.4% in 2018. In terms of  insurance premiums of the Armenian insurance companies, an annual  decline of 9.3% was also recorded - to 44.5 billion drams or $ 85.2  million, after accelerating growth in 2019 to 19.8% in 17.4% in 2018.  According to the Financial Rating of Insurance Companies of Armenia,  prepared by ArmInfo IC, the annual growth of payments was provided by  three companies within 2.4-9.2%, and the decline of the other three  companies turned out to be more significant - 23.5-5.5% with the  maximum for IC " INGO Armenia ", which demonstrated the maximum  growth in 2019.

By class, the deterioration of the annual trend from upward to  downward was observed in: freight insurance - 81.5% (against a  2.5-fold jump in 2019), travel insurance - 61.4% (against a 9.3%  decline in 2019 ), medical insurance - 10% (against 17.1% growth in  2019) and OSAGO - 8.8% (against 10.1% growth in 2019). Along with  them, an annual decline in the volume of payments was recorded for  general liability insurance, with a slowdown to 30.4% from 48% in  2019.

We improved the annual dynamics of payments: property insurance - up  to 22.3 times growth (against 37.3% decline in 2019), financial  damage insurance - up to 3.7 times growth (against 10.8% decline in  2019 ), accident insurance - up to 42.9% growth (from 31.1% decline  in 2019), CASCO - up to 7.7% growth (against 28.1% decline in 2019) ,  liability insurance against the use of land transport - up to 2%  (against a 74.9% decline in 2019). And for air transport insurance,  payments in 2020 were zeroed, against 120 million drams in 2019.

The list of classes for which no payments were recorded at all in the  reporting year, in addition to insurance of air transport and the  liability of its use, also includes insurance of credit risks, water  transport and liability for its use, and guarantees provided.

Rosgosstrakh-Armenia IC holds the lead in terms of the volume of  insurance payments - 7.7 billion drams.  The second place is taken by  IC "INGO Armenia" with the volume of compensations of 4.8 billion  drams.  The TOP-3 is closed by the IC "Nairi Insurance" with the  volume of payments of 3.7 billion drams. Close to them is the Seal  Insurance IC with an indicator of 3.2 billion drams. The fifth  position is occupied by RESO IC with 2.1 billion drams. And the list  of insurance companies is closed by "Armenia Insurance" IC with the  volume of payments of 1.7 billion drams.

The largest share of payments in the structure of compensations  traditionally fell on OSAGO - 58.6% or 13.6 billion drams, against  59.6% a year earlier. The share of medical insurance accounted for  31.6% of the total volume of insurance payments or 7.3 billion drams,  against 32.6% a year earlier. In the CASCO segment, the volume of  insurance payments amounted to 1.1 billion drams or 4.5% in total  insurance claims, against 3.9% a year earlier. The share of insurance  of cargo transportation decreased to 0.2% (from 1% a year earlier),  amounting to 46.2 million drams, and insurance of financial damage,  on the contrary, increased to 3.02% (from 0.8% a year earlier),  amounting to 701 million drams. For other classes, payments range  from 5.9-206 million drams, with a maximum for property insurance  against fires and natural disasters (1% of total payments, versus  0.5% a year earlier) and a minimum for liability insurance against  the use of vehicles (the same 0.02%).  In 2020, insurance companies  in Armenia recorded a total of 305.5 thousand insured events (with an  annual decline of 13.7% against 17.9% growth in 2019), of which the  majority fell on medical insurance - 238.6 thousand cases. (with an  annual decline of 12.7%). Under OSAGO, insurers recorded 64.2  thousand insured events (with an annual decline of 16.7%).  Land  transport insurance (CASCO) takes the third place in terms of the  number of cases - 1.5 thousand cases (with an annual decline of 13%),  property insurance has advanced to the fourth place - 440 cases (with  an annual growth of 3.2 times), displacing the fifth position -  insurance of people traveling abroad - 307 cases (with an annual  decline of 71.3%). There are 2 compulsory types of insurance  practiced in the insurance market of Armenia - OSAGO and medical  insurance of state employees.  It should be reminded that there are 6  companies on the insurance market of Armenia, operating out of the  available 20 classes of insurance, 17 each, with the exception of  insurance of railway transport, liability from the use of railway  transport, insurance of judicial and extrajudicial expenses.  Moreover, since 2019, at the request of the Central Bank of Armenia,  a line has been added to financial reports on the portfolio of all 6  ICs - insurance of seismic risks (against earthquakes), data on which  are also included in the corresponding classes of insurance. And  since the second quarter of 2020, a line has been added to the  portfolio financial reports - insurance of agricultural risks  (agricultural insurance), the data on which are also included in two  other classes of insurance: property against fires and natural  disasters; property from other damages. The largest number of classes  is licensed by IC "INGO Armenia" - 16 (the only one operating in the  class of water transport insurance) and IC "Rosgosstrakh Armenia" -  15. (The estimated exchange rate of the dram to the dollar as of  12/31/2020 was 522.59 AMD / $ 1).