Loss ratio for CMPTL in Armenia decreased in Q1 2022 to 68% from 88%  in 2021

ArmInfo.. The number of vehicles with an CMPTL policy in Armenia,  in Q1 2022increased  more significantly than in the pre-Covid comparable period, due to which the volume of insurance premiums exceed the upward trend of two years  ago.

Thus, according to the Armenian Motor Insurers' Bureau the  number of vehicles with a CMPTL policy in Q1 2022 increased by 10.4%  per annum, with an exit from the 6.5% decline in 2021 and exceeding  pre-Covid rising rates of 3.6% in 2019. In quantitative terms, by  April 2022, there were already 575.781 thousand such vehicles,  against 509.001 thousand units in pre-Covid 2019.

The number of CMTPL contracts concluded also showed a recovery of  growth, approaching the pre-crisis growth rates. So, for the reporting period, the y-o-y dynamics changed from the  4.9% decline to 15.9% growth, against the pre-Covid 18.7% growth in  2019. But in quantitative terms, more CMPTL-contracts were concluded  in Q1 2022, than in the same period of 2019 - 249.584 thousand  pieces, against 230.792 thousand pieces. And the volume of insurance  premiums collected on them increased by 17.5% per annum, exceeding  5.6 billion drams ($11.6 million), against the pre-Covid 4.7 billion  drams. The average insurance premium for one CMPTL contract amounted  to 22,507 drams in the reporting period, with a slowdown in y-o-y  growth from 5.1% to 1.4% (against a 6.6% decline in 2019).

There was also a growth in CMPTL contracts that entered into force  during the reporting period - by 13.2% (against a 6% decline in 2021  and a 16.1% growth in 2019), amounting to 259.572 thousand units.   Under these contracts, the volume of insurance premiums exceeded 6.2  billion drams ($12.8 million), resuming growth with an excess of  pre-Covid rates - 12.5% against 6.5%.

At the same time, the y-o-y growth in the number of terminated CMPTL  contracts sharply slowed down - from 2.5-fold s to 22.3%, amounting  to 10.191 thousand units, while in 2019-2020 their number was  declining rapidly. And the volume of returned or repayable premiums  increased almost the same amount- by 21.5%, , exceeding 136.3 million  ($280.6 thousand).

Against this background, high activity of sales of CMPTL e-policies  for Q1 2022 remains - 68,498 thousand units, with y-o-y growth of  65.1%. Moreover, in comparison with the pre-Covid indicators of the  comparable period (Q1 2019), the growth rate slowed down  significantly (from 4-fold), but in quantitative terms, a significant  increase of 9-fold is recorded (from 7.698 thousand units). As a  result, the share of e- policies in the total number of CMPTL  contracts reached almost a third by April 2022 - 27%, against 19% in  2021 and a meager 3.3% in pre-Covid 2019.

18,593 thousand applications for insurance compensation were  submitted in Q1 2022, which is 9% less than a year ago (against 2.3%  growth in 2021 and 19.4% growth in 2019). And the volume of payments  on them exceeded 3.8 billion drams ($7.9 million), with  y-o-y  decline of 13.5% (against 9% growth in 2021 and 10.1% growth in  2019). Moreover, 7.437 thousand applications were received in cases  of simplified registration of road accidents (according to the  European protocol), with a reversal of y-o-y dynamics towards a 23.7%  decline from a 12% growth in 2021 (against 10.5% growth in 2019).

The volume of reimbursements paid out under the European protocol  exceeded 573.3 million drams with a y-o-y decline of 26.8% (after an  acceleration of growth from 3.6% in 2019 to 34.7% in 2021), and the  average amount of one payment amounted to 77.089 thousand drams with  a y-o-y decline of 4% (against a 20.2% growth in 2021 and a 6.3%  decline in 2019). Meanwhile, the average amount of one payment for  general insurance claims decreased by 5% (against 6.5% growth in 2021  and 7.8% decline in 2019), amounting to 207.534 thousand drams.

The CMPTL loss ratio in Q1 of 2022 decreased to 68% from 88% in 2021,  falling even below the pre- Covid 73.7% in 2019, and almost returning  to the level of 2017 (67%). This was due to a 15.9% y-o-y increase in  the number of contracts concluded, as a result of which insurance  premiums increased by 17.5% to $ 11.6 million, while at the same time  there was a 13.5% decline to $ 7.9 million.

In Q1 2022, compared to the same period in 2021, the number of  vehicles with a valid CMPTL contracts increased by 54,136 thousand  units. In particular, 5 ICs recorded an increase in this indicator by  a total of almost 62.8 thousand units, while one IC, on the contrary,  had a decline by 8.6 thousand units. Moreover, the only reduction was  observed in Armenia-Insurance, and the largest increase in Nairi  Insurance - by 22.1 thousand units. Nevertheless, Rosgosstrakh  Armenia IC continues to be the leader in terms of the number of  vehicles with a valid CMPTL policy - 171.683 thousand units (with a  y-o-y growth of 5.9% or 9.6 thousand units), the second place is held  by Nairi Insurance - 136.481 thousand units (with a y-o-y growth of  19.3%), the third - INGO Armenia IC- 86.890 thousand units (with a  y-o-y  growth of 5% or 4.2 thousand units), the fourth - RESO IC -  71.551 thousand units (with a y-o-y growth of 12% or 7.7 thousand  units), the fifth - SIL Insurance - 68.942 thousand units (with a  y-o-y growth of 38.8% or 19.3 thousand units), and the sixth -  Armenia-Insurance - 40.234 thousand units (with a y-o-y decline of  17.7%).

"Rosgosstrakh Armenia" IC is also the leader in terms of the share of  insurance premiums in the total volume of 31.3% in the market  (against 30.2% in 2021), in terms of the share of reimbursements -  31.72% (against 33.01% in 2021), and the coverage of e-policies for  CMPTL is now 49.2% (against 53.2% in 2021). This company continues to  lead in terms of the share of vehicles with a valid CMPTL policy -  29.82%, which is below the bar in 2021 (31.08%), but above the level  of 2019 (27.04%). The second place in these indicators is held by  "Nairi Insurance": in terms of the share of insurance premiums -  24.1%, in terms of the share of indemnities - 20.96%, in terms of the  number of e-policies of CMPTL - 16.9%, in terms of the share of  vehicles with valid CMPTL - policy - 23.7%. And the third place is  occupied by "INGO Armenia" IC - 13.5%, 13.68%, 11.4%, 15.09%,  respectively, in terms of premiums, compensations, E-policies, the  number of insured vehicles.  The share of these indicators in the  total market volume is much smaller for the other three ICs.

It should be noted that there are 6 insurance companies operating in  Armenia, operating from the existing 20 classes of 17, with the  exception of railway transport insurance, liability from the use of  railway transport, insurance of legal and extrajudicial expenses.   According to the largest number of classes, "INGO Armenia" IC - 16  (the only one operating in the class of water transport insurance)  and "Rosgosstrakh Armenia" IC - 15 are licensed.