Tuesday, November 2 2021 11:36

ArmInfo. In Armenia, the very slow growth of vehicles with a CMPTL policy restrains the growth of fees. So, according to the Motor Insurers' Bureau of Armenia, in  January-September 2021 their number increased by 1.3% per annum, with  a change of the 3.6% decline a year earlier, but is still much  inferior to the pre-COVID rising rates of 14.3% for the same period  of 2019.

 However, in quantitative terms in January-September of this  year, managed to approach the pre-COVID bar - 560.346 thousand units  against 573.817 thousand units.

The resumed growth in the number of CMTPL concluded contracts also  strongly lower than the pre- COVID upward rates. Thus, during the  reporting period, the dynamics changed from the 17.9% decline to 6.1%  growth, while being strongly lower the 35% growth two years ago. As a  result, in January-September of this year, fewer CMPTL contracts were  concluded than at the same pre-COVID period - 771,895 pcs.  against  828 791 pcs. And the volume of insurance premiums collected on them  exceeded 15.8 billion drams ($ 32.7 million), with the change of the  y-o-y dynamics from the 8.6% decline to 7.1% growth, much lower than  the pre-COVID increase of 26.7%. The average amount of insurance  premium per one CMPTL contract amounted to 21,908 drams in the  reporting period, slowing down the y-o-y growth from 11.3% to 0.9%.

A more modest growth was outlined by the CPMTL contracts that entered  into force during the reporting period - 5.4% (against an 18% decline  a year earlier and 32.7% growth two years ago), amounting to 735,058.  Under these contracts, the volume of insurance premiums was 16.6  billion drams ($ 34.2 million), which resumed growth, but at a rate  lower than the pre-COVID bar - 5.4% against 17.9%.

At the same time, the number of terminated CMPTL contracts continues  to grow significantly - 3.8-fold in January-September 2021 compared  to the same period a year ago, amounting to 53,741, while in 2019-  2020 their number was rapidly decreasing. And the volume of refunded  or refundable refunded premiums increased almost as much 2.9-fold,  reaching 671.7 million drams ($ 1.4 million).

Against this background, sales of CMTPL E-policies remain high -  158,335 units, despite a slowdown in growth over the past two years  from 3.7-fold to 66.8%. As a result, the share of E-policies in the  total number of CPMTL contracts increased from a pre-COVID 5% to a  reporting 22%.

Applications for insurance compensation in January-September 2021were  submitted 56,745, which is 14.5% more than a year ago (against a  12.2% decline a year earlier). And the volume of payments on them  exceeded 12.1 billion drams ($ 25 million), with a y-o-y growth of  12.3% (against a 4% decline a year earlier). Moreover, 25,950  applications turned out to be in cases of simplified registration of  road accidents (according to the European protocol) with a y-o-y  growth of 29.1% (against 17.1% decline a year earlier), for which the  volume of compensations paid exceeded 2 billion drams, having  increased on a y-o-y terms by 40.2% (against a 16.2% decline a year  earlier), and the average size of one payment was 77.601 thousand  drams (with an acceleration of y-o-y growth from 1% to 8.6%). As for  general insurance indemnities, the average size of one payment  decreased by 1.9% (against 9.4% growth in the previous year),  amounting to 213.714 thousand drams.

The loss ratio for CMPTL in January-September 2021 increased to 78%  from 63% in the same period of 2020, while in the same pre-COVID  period there was a decrease from 71% to 68%.  In January-September  2021, by the same period of 2020, the number of vehicles with a valid  CMPTL agreement increased by 7,446 thousand units. In particular, 4  ICs recorded an increase in this indicator by a total of almost 29.7  thousand units, while the remaining 2 ICs, on the contrary, had a  decline by 22.2 thousand units. Moreover, the maximum reduction was  observed in Rosgosstrakh Armenia IC - by 14.4 thousand units, and the  greatest growth was observed in Nairi Insurance - by 17.5 thousand  units. Nevertheless, Rosgosstrakh Armenia IC continues to be the  leader in the number of vehicles with a valid CMTPL policy - 167.635  thousand units (with a y-o-y decline of 7.9%), the second place is  held by Nairi Insurance - 129.561 thousand units (with a y-o-y growth  of 15.6%), INGO Armenia is on the third place  - 89.217 thousand  units (with a y-o-y growth of 5.9% or 5 thousand units), RESO IC is  on the fourth place - 72.524 thousand units (with a y-o-y growth of  9.6% or 6.3 thousand units), Sil Insurance ranked fifth - 58.355  thousand units (with a y-o-y growth of 1.5% or 866 units), and  Armenia-Insurance is on the sixth place -  43.054 thousand units  (with a y- o-y decline of 15.4% or 7.9 thousand units).  

Rosgosstrakh Armenia IC also holds the lead in terms of the share of  insurance premiums in the total volume of the market - 30.3% (against  33.4% a year earlier), in terms of the share of compensations -  31.97% (against 32.07% a year earlier), and already covers over 50%  of E-CMPTL policies (against 46.9% a year earlier). This company  continues to lead in terms of the share of vehicles with a valid  CMPTL policy - 29.92%, despite a slight decrease from last year's  32.92%. "Nairi Insurance" holds the second place in terms of these  indicators: by the share of insurance premiums - 23.4%, by the share  of compensations - 18.78%, by the number of E-CMTPL policies - 15.1%,  by the share of vehicles with a valid CMTPL - policy - 23.12%. And  the third place is taken by INGO Armenia IC - 15.5%, 13.63%, 12.7%,  15.92%, , in terms of premiums, compensations, E-policies, the number  of insured vehicles, respectively. The share of these indicators in  the total market of the other three ICs is much smaller.  It should  be noted that there are 6 insurance companies (IC) 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. In terms  of the largest number of classes, INGO Armenia IC is licensed - 16  (the only one operating in the class of water transport insurance)  and Rosgosstrakh Armenia IC - 15. (The estimated exchange rate of the  dram to the dollar as of September 30, 21 was 484.20 drams / $ 1).