ArmInfo.In Armenia, the number of terminated CMTPL contracts continues to grow rapidly - 3.9 -fold in January-May 2021 compared to the same period a year ago, amounting to 19,500. And almost the same - the volume of returned or refundable premiums increased by 3 times - up to 236.1 million drams ($ 453.4 thousand). This is evidenced by the data of the Bureau of Motor Insurers of Armenia, according to which, in the reporting period, the number of vehicles with MTPL policy decreased by 2.3%.
According to the Bureau, the number of compulsory motor third party liability agreements entered into during the reporting period, slowing down the annual decline to 1.1%, amounted to 373,729, which included insurance premiums in the amount of 8.7 billion drams ($ 16.7 million) with the dynamics coming out of the recession to 0 .9% growth.
As a result, the total number of MTPL contracts concluded slowed down the annual decline to 0.1%, amounting to 360,068. And the volume of collected insurance premiums exceeded 7.9 billion drams ($ 15.2 million), with the annual dynamics coming out of the decline to 3.4% growth. The average insurance premium per one CMTPL contract increased in January-May 2021 by 3.5% per annum, amounting to 21,949 drams.
Against this background, sales of E-CMTPL policies remain high - 70,978 units, despite a slowdown in annual growth from 3-fold to 56%. And in the total number of MTPL contracts, the share of E-policies increased to 20% from 13% a year earlier.
Applications for insurance compensation were submitted in January-May 2021, 32,827, which is 16.8% more than a year ago. And the volume of payments on them exceeded 7.1 billion drams ($ 13.7 million), with an annual growth of 17.1%. Moreover, 15,296 applications turned out to be in cases of simplified road traffic accidents (according to the European protocol) with an annual growth of 32.9%, for which the volume of compensations paid exceeded AMD 1.2 billion, having increased by 49.8% on an annual basis, and the average amount of one payment was 79,503 drams (with change of the annual dynamics from 6% decline to 12.7% growth). As regards general insurance indemnities, the average amount of one payment increased insignificantly - by 0.3%, amounting to 216.930 thousand drams.
The loss ratio for CTPML increased in January-May 2021 up to 83% from 58% in the same period in 2020. According to the results of January-May 2021, there are 528,970 vehicles in Armenia with a valid MTPL contract. Their number on an annual basis decreased by 12 381 units, of which more than 13 thousand units decreased at Rosgosstrakh Armenia and more than 12 thousand units at Sil Insurance. Thus, the decline was recorded in three insurance companies: the maximum for Sil Insurance - by 19.7%, and in the other two - in the range of 1.5-7.6% (the maximum was for Rosgosstrakh Armenia, the minimum for RESO). The largest growth was shown by IC Nairi Insurance (10.7%), followed by Armenia-Insurance (4.8%) and INGO Armenia (0.6%) at an ascending rate. Nevertheless, Rosgosstrakh Armenia IC continues to be the leader in terms of the number of vehicles with a valid CTPML agreement - 161,312 units (with an annual decline of 13,269 units), the second position is held by Nairi Insurance - 116,968 units (with an annual growth of 11 336 units), INGO Armenia ranks third - 85 911 units (with an annual growth of 489 units), in the fourth - RESO - 65 414 units. (with an annual decline of 1,017 units), on the fifth - Seal Insurance - 49,735 units. (with an annual decline of 12 182 units), and the sixth - Armenia-Insurance - 49 630 units (with an annual growth of 2,262 units).
As a comparison, referring to the data of the Bureau of Auto Insurers, we note that in January-May 2020, an increase in the number of vehicles with MTPL contracts by 1.1% per annum was accompanied by a decline in MTPL contracts by 12.9% (with an e-MTPL increase of 3 times) and a decline in the volume of collected insurance premiums by 8.7%. At the same time, the number of compulsory motor third party liability agreements that entered into force decreased by 12.8% per annum, with a decline in the volume of insurance premiums on them by 8.3%. The number of CTP contracts terminated during this period decreased by 78.1% per annum, for which the volume of returned or refundable premiums decreased by 78.2%. The average insurance premium per CTPML contract increased by 4.8% per annum. And the number of vehicles with a valid MTPL contract has increased by 5,824 units per year, and Rosgosstrakh Armenia is holding the lead. Applications for insurance compensation decreased in January-May 2020 by 11% per annum, with a decline in the volume of payments on them by 2.6% (with an increase of 9.5% in the average amount of one payment). The number of applications under the European protocol decreased more significantly - by 22.8%, with a concomitant reduction in the volume of payments under them by 27.4% (with a 6% decline in the average amount of one payment). Loss ratio for CTPML in January-May 2020 decreased to 58% from 76% in the same period in 2019. As a reminder, since August 2020, a higher damage threshold has come into force for insured events under the European protocol - 200 thousand drams, against the previous 100 thousand drams.
