Monday, June 14 2021 11:31
Karine Melikyan

The number of terminated CMTPL contracts continues to grow rapidly in  Armenia

The number of terminated CMTPL contracts continues to grow rapidly in  Armenia

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.


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