ArmInfo. The growth of vehicles with CMTPL (compulsory motor third party liability policy) resumed in Armenia. And as evidenced by the data of the Bureau of Motor Insurers of Armenia, their number increased in January-August 2021 by 1% per annum, with an exit from the 2.9% decline a year earlier, but so far it is much inferior to the pre-covid upward rate of 13% for the same period in 2019.
However, in quantitative terms in January-August of this year it was almost managed to restore the pre-covid threshold - 556,082 units against 567 483 units. The resumed growth in the number of CMTPL contracts concluded also significantly yielded to the pre- covid upward rates. Thus, during the reporting period, the dynamics came out of the 16.8% decline to 5.6% growth, while being strongly behind the 34% growth two years ago. As a result, in January-August of this year fewer CMTPL contracts were concluded than in the same pre-covid period - 633 805 units against 721 821. And the volume of insurance premiums collected on them exceeded 13.9 billion drams ($ 28.2 million), with the release of the annual dynamics from 8.2% decline to 7% growth, much inferior to the pre-covid upward 25.2%. The average amount of insurance premium per one CMTPL contract amounted to 21,929 AMD in the reporting period, slowing down the annual growth from 10.4% to 1.3%. A more modest growth was outlined by the compulsory motor third party liability insurance contracts that entered into force in the reporting period - 4.7% (against a 16.9% decline a year earlier and a 33% growth two years ago), amounting to 646,332. The amount of insurance premiums on these contracts totaled 14.6 billion drams ($ 29.7 million), resuming growth, but at a rate inferior to the pre-covid threshold- 5.2% against 16.2%.
However, there is a significant increase in the number of terminated CMTPL contracts - 3.9-fold in January-August 2021 compared to the same period a year ago, amounting to 43 658, while in 2019-2020 their number was rapidly decreasing. The volume of returned or subject to return premiums has increased almost as much-3 -fold, reaching 544.5 million drams ($ 1.1 million).
Against this background, the high activity of sales of E-CMTPL policies remains -135,188, despite the slowdown in growth over the past two years from 3.6 -fold to 63.5%. As a result, the share of E-policies in the total number of MTPL contracts increased from a pre-covid 5% to a reporting 21%.
50 375 applications for insurance compensation were submitted in January-August 2021, which is more than a year ago by 14.8% (against a 12.4% decline a year earlier). And the volume of payments on them exceeded 10.8 billion drams ($ 22 million), with an annual growth of 13% (against a 4.1% decline a year earlier). Moreover, 23,362 applications turned out to be in cases of simplified registration of road accidents (according to the European protocol) with an annual growth of 32.5% (against a 24.1% decline a year earlier), for which the volume of compensations paid exceeded 1.8 billion AMD, having increased on an annual basis by 46.2% (against 28.3% decline a year earlier), and the average amount of one payment - 78.282 thousand drams (with the release of the annual dynamics from the 5.5% decline to 10.3% growth). As for general insurance indemnities, the average amount of one payment decreased by 1.5% (against 9.4% growth in the previous year), amounting to 215.019 thousand drams.
The loss ratio for CMTPL increased in January-August 2021 to 79% from 61% in the same period of 2020, while less noticeably exceeding the pre-covid 72%.
In January-August 2021, by the same period of 2020, the number of vehicles with a valid CMTPL agreement increased by 5,239 thousand units. In particular, 3 insurance companies recorded an increase in this indicator by a total of almost 28 thousand units, while in case of the remaining 3 companies, on the contrary, the indicator declined by 23 thousand units. Moreover, the maximum reduction was observed in Rosgosstrakh Armenia - by 14.2 thousand units, and the largest growth was observed in Nairi Insurance - by 16.7 thousand units. Nevertheless, Rosgosstrakh Armenia IC continues to be the leader in the number of vehicles with a valid CMTPL policy - 166.610 thousand units (with an annual decline of 7.9%), the second position is held by Nairi Insurance - 128,008 thousand units (with an annual growth of 15%), INGO Armenia ranks third - 89,052 units (with an annual growth of 6% or 5 thousand units), on the fourth - RESO - 71.803 thousand units (with an annual growth of 9.7% or 6.3 thousand units), the fifth - Sil Insurance - 56.405 thousand units (with an annual decline of 3.5% or 2 thousand units), and the sixth - Armenia-Insurance - 44.204 thousand units (with an annual decline of 13% or 6.5 thousand units).
Rosgosstrakh Armenia IC also holds the lead in the share of insurance premiums in the total volume of the market - 30.2% (against 33.4% a year earlier), in the share of compensations - 32.06% (against 32.02% a year earlier), and already over 51% covers E-CTPL policies (against 46.6% a year earlier). This company continues to occupy a leading position in terms of the share of vehicles with a valid CTPML policy - 29.96%, despite a slight decrease from last year's 32.82%. IC "Nairi Insurance" holds the second position in terms of these indicators: by the share of insurance premiums - 23.3%, by the share of compensations - 18.71%, by the number of E-CMTPL policies - 14.7%, by the share of vehicles with a valid MTPL - policy - 23.02%. And the third position is taken by INGO Armenia IC - 15.6%, 13.55%, 12.7%, 16.01%, respectively, in terms of premiums, compensations, E-policies, the number of insured vehicles. In case of the remaining three insurance companies, the share of these indicators in the total market is much smaller. It should be noted that there are 6 insurance companies operating in Armenia, 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. 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 August 31 was 493.12 AMD / $ 1).
