Wednesday, May 11 2022 15:19
Karine Melikyan

FinRating ArmInfo: Travel insurance has grown in terms of the number  of contracts concluded

FinRating ArmInfo: Travel insurance has grown in terms of the number  of contracts concluded

ArmInfo. The share of the corporate component in the premium portfolios of Armenian insurers in Q1 2022 exceeds the retail component - 65.5% (13.3 billion drams) and 34.5% (7 billion drams), almost repeating the figures of a year ago - 64.9%  and 35 .1% respectively.  

According to the Financial Rating of  Insurance Companies in Armenia, prepared by ArmInfo IC, the capacity  of the retail insurance market has sharply accelerated growth to 22%  from a meager 1.4% a year earlier, which was also observed in the  dynamics of corporate insurance- from 4.5% to 25.4%.

According to the results of Q1 2022, the premium portfolios of five  companies are dominated by corporate insurance, and only RESO IC is  dominated by retail. The largest gap between corporate and retail  insurance remains with "INGO Armenia" IC - 78.8% against retail  21.2%, and the smallest gap with "Sil Insurance" - 51.6% against  retail 48.4%. And only IC "RESO" is dominated by the retail component  - 65.2% against corporate 34.8%. A year earlier, for Q1 2021, INGO  Armenia (75.1%) also showed the largest dominance of the corporate  portfolio in terms of premiums, and RESO IC (55.3%) was the only one  with a dominant retail component.

The share of payments to retail clients in the structure of insurance  claims in Q1 2022, accounted for 67.2% or 4.1 billion drams,  corporate - 32.8% or 1.99 billion drams, against 64.8% and 35.2%, a  year earlier, respectively. At the same time, the dynamics of  compensations for both legal entities and individuals turned towards  a decline by 19% and 10%, respectively, against an increase a year  earlier in both cases by 23% and 3%. During the reporting quarter,  only one insurance company in the reimbursement portfolio was  dominated by the corporate component - INGO Armenia (58.9%), while  the remaining five had a retail component (with a maximum of 92.2%  for Rosgosstrakh Armenia), while a year earlier, there were three  insurance companies with a corporate dominant in reimbursements, and  the maximum was also recorded by INGO Armenia (53.7%), and the  maximum retail dominant, as now, was with Rosgosstrakh Armenia  (89.6%).

The share of corporate insurance in the structure of premiums  transferred for reinsurance in Q1 2022 amounted to 81% or 3.2 billion  drams (with an acceleration of y-o-y growth from 26% to 50%), and  retail insurance - 19% or 757.7 million drams (with a 2.6-fold  slowdown y-o-y growth to 56%), against 81.6% and 18.4%, a year  earlier, respectively. The largest dominance of the corporate  component in the premiums transferred for reinsurance was recorded by  "Armenia Insurance" - 97.4% against retail 2.6%, and only "Sil  Insurance" dominates the retail component - 59%. A year earlier,  Rosgosstrakh Armenia IC showed the largest gap between the corporate  component and the retail component - 95% versus 5%, and the smallest  - Sil Insurance - 65.1% versus 34.9%.

Armenian insurers concluded 422,049 contracts in Q1 2022, which is  4.3% more than the number of contracts a year ago (against a 4.1%  decline a year earlier). Thus, the number of insurance contracts in  force as of April 1, 2022 amounted to 811,844 with an acceleration of  the y-o-y decline to 10.6% (from 8.9% a year earlier). Among the  classes, the leading position in terms of the number of concluded  contracts is held by CMPTL - in Q1 257.6 thousand, the number of  valid contracts under which by April 1 exceeded 552 thousand. 

The most common of the voluntary types of insurance is accident  insurance, for which 61.4 thousand were concluded in Q1, the number  of valid contracts by April 1 exceeded 159.7 thousand. In terms of  demand, the next place is occupied by medical insurance, according to  which the number of contracts signed in Q1 reached 59.6 thousand, and  the number of valid contracts by April 1 was 10.5 thousand.

In terms of the number of contracts valid by April 1 in the  CMPTLsegment, Rosgosstrakh Armenia IC is leading - 166.9 thousand (of  which 78.2 thousand were concluded in Q1), which holds the lead in  terms of the number of contracts in the medical insurance segment as  well - 36 thousand ( and all are concluded in Q1).  INGO Armenia is  the leader in the number of contracts in the accident insurance  segment - 72.5 thousand as of April 1 (of which 36.7 thousand were  signed in Q1).  INGO Armenia is also leader in CASCO (5.7 thousand  valid contracts as of April 1, of which 1.3 thousand were concluded  in Q1).

As for the insurance for travelers abroad, the most contracts were  sign by "Rosgosstrakh Armenia" IC, which had 2.2 thousand active  contracts by April 1, of which 1.7 thousand were signed in Q1.

In terms of the number of contracts concluded in Q1, Rosgosstrakh  Armenia IC occupies the first place- 135.4 thousand, the second -  INGO Armenia IC - 86.3 thousand, the third - Nairi Insurance IC -  71.5 thousand, the fourth - "Sil Insurance" - 54.3 thousand, the  fifth - "RESO IC " - 51.2 thousand, the sixth - "Armenia Insurance" -  23.4 thousand. OSAGO with a maximum for Armenia Insurance (88%) and a  minimum for INGO Armenia (40.7%).  CMTPL dominates the contracts in  all six companies, "Armenia Insurance" (88%) with the highest score,  INGO Armenia (40.7%) with the lowest

It is noteworthy that the largest growth in contracts concluded in Q1  was recorded in travel insurance - 2.5- fold t (with a 60.5% decline  a year earlier). And the largest y-o-y decline in the number of  contracts concluded in the reporting quarter was recorded for air  transport insurance (by 33.3%), and along with this class, a  reduction in contracts was recorded for accident insurance (by 19%),  CASCO (by 13%), medical insurance (by 7.2%), property insurance (by  4%), and financial insurance (by 0.2%).

It should be noted that there are 6 companies operating in the   insurance market of Armenia, which work on 17 out of the available 20  classes of insurance, with the exception of insurance of railway   transport and liability from its use, insurance of legal and   extrajudicial expenses. Since Q2 2020, a class of agricultural risk   insurance has been added to the IC reports, but it is not summed up   to the final indicator, since it is taken into account in two other   types of insurance: property from fires and natural disasters;   property from other damages. "INGO Armenia" IC - 16 and "Rosgosstrakh   Armenia" IC - 15 are licensed with the largest number of classes. 

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