Monday, May 16 2022 19:31
Karine Melikyan

CMTPL loss ratio in Armenia decreased from 86% in 2021 to 67% by May  2022

CMTPL loss ratio in Armenia decreased from 86% in 2021 to 67% by May  2022

ArmInfo.In Armenia, the number of vehicles with a CMPTL policy increased in January-April 2022 more significantly than in the pre-Covid comparable period, which allowed the volume of insurance premiums to exceed the upward trend of two  years ago.

Thus, according to the Armenian Motor Insurers' Bureau,  the number of vehicles with a CMPTL policy increased by 11.1% per  annum in January-April 2022, with an exit from the 2.8% decline in  2021 and exceeding the pre-Covid 5.5% in 2019 . In quantitative  terms, there were already 587.297 thousand such vehicles by May 2022,  against 517.105 thousand pieces in pre-Covid 2019.In terms of the  number of CMTPL agreements, the resumption of growth was also  observed, which is approaching the pre-liquid growth rates.  

Thus, during the reporting period, y-o-y growth accelerated from  0.4%to 18.7%, against the pre-Covid 21.1% growth in 2019. But in  quantitative terms, in January- April 2022, it was possible to  conclude more CMPTL-contracts than in the same period of 2019 -  335.506 thousand pieces against 312.672 thousand pieces. And the  volume of insurance premiums collected on them increased by 20.6% per  annum, exceeding 7.5 billion drams ($16.6 million), against the  pre-Covid 6.4 billion drams. The average insurance premium for one  CMPTL-contract amounted to 22,372 drams in the reporting period, with  a slowdown in y-o-y growth from 4.1% to 1.7% (against a 4.1% decline  in 2019).  There was also an increase in CMTPL contracts that entered  into force during the reporting period - by 17% (against a 0.8%  decline in 2021 and a 29.7% growth in 2019), amounting to 346.657  thousand pieces.  Under these contracts, the volume of insurance  premiums reached 8.2 billion drams (over $18 million), resuming  growth with an excess of pre-Covid rates - 16.9% against 10.8%.

At the same time, the y-o-y growth in the number of terminated CMPTL  contracts has slowed down to some extent - from 3.7-fold to 2.9-fold,  amounting to 38.183 thousand pieces, while in 2019-2020 their number  was declining rapidly. And almost the same amount- increased the  volume of returned or refundable premiums-2.6-fold, exceeding 439.2  million ($969.1 thousand).

Against this background, high activity of sales of CMPTL E-policies  is maintained - 90.279 thousand pieces for January-April 2022, with  an acceleration of y-o-y growth from 59.7% to 64.6%. Moreover, in  comparison with the pre-Covid  indicators of the comparable period  (January-April 2019), the growth rate slowed down significantly  (3.8-fold), but in quantitative terms,  more than a 8-fold  jump is  recorded (from 11.028 thousand pcs). As a result, the share of  E-policies in the total number of CMPTL agreements reached almost a  third by May 2022 - 27%, against 19% in 2021 and a meager 3.5% in  pre-Covid 2019.

In January-April 2022, 23,707 thousand applications for insurance  compensation were submitted, which is 12.5% less than the indicator  of a year ago (against 14.4% growth in 2021 and 24.1% growth in  2019). And the volume of payments on them amounted to 4.97 billion  drams ($10.96 million), with a y-o-y decline of 15% (against 16%  growth in 2021 and 14.3% growth in 2019). Moreover, 8.888 thousand  applications were received for cases of simplified registration of  traffic accidents (according to the European protocol), with a  reversal of y-o-y dynamics towards a 30.1% decline from 27.4% growth  in 2021 (against 12.3% growth in 2019). The volume of reimbursements  paid under the European Protocol exceeded 682.8 million drams with a  32.7% y-o-y decline (after an acceleration of growth from 6.4% in  2019 to 43.8% in 2021), and the average amount of one payment  amounted to 76.824 thousand drams, with a y-o-y decline of 3.8%  (against 12.9% growth in 2021 and a 5.3% decline in 2019). For  general insurance indemnities, the average amount of one payment  decreased by 2.9% (against a 1.4% increase in 2021 and an 8% decline  in 2019), amounting to 209.470 thousand drams.

The CMPTL loss ratio decreased to 67% in January-April 2022 from 86%  in 2021, falling even below the pre-Covid 73% in 2019. This was due  to a y-o-y growth in the number of contracts concluded by 18.7%,  which brought insurance premiums up by 20.6% to $16.6 million, while  at the same time there was a 15% drop in claims to $10.96 million.

In January-April 2022, compared to the same period in 2021, the  number of vehicles with a valid CMPTL contract increased by 58,911  thousand pieces. In particular, 5 ICs recorded an increase in this  indicator by a total of almost 67.5 thousand pieces , while one IC,  on the contrary, had a decline by 8.6 thousand pieces.  Moreover, the  only reduction was observed in Armenia-Insurance, and the largest  increase in Nairi Insurance - by 25.2 thousand pieces. Nevertheless,  Rosgosstrakh Armenia Insurance Company continues to be the leader in  terms of the number of vehicles with a valid CMPTL policy - 173.386  thousand pieces (with a y-o-y growth of 6.3% or 10.3 thousand  pieces), the second position is held by Nairi Insurance - 140.901  thousand pieces, (with a y-o-y growth of 21.7%), the third - INGO  Armenia - 86.870 thousand pieces (with an annual growth of 2.6% or  2.2 thousand pieces), on the fourth - RESO - 72.923 thousand pieces  (with a y-o-y growth of 12.4% or 8 thousand pieces) on the fifth -  Sil Insurance - 72.032 thousand pieces (with a y-o-y growth of 43.5%  or 21.8 thousand pieces), and the sixth - Armenia-Insurance - 41.185  thousand pieces (with a y-o-y decline of 17.2%).

"Rosgosstrakh Armenia" IC also holds the lead in terms of the share  of insurance premiums in the total volume in the market - 30.7%  (against 30.2% in 2021), in terms of the share of reimbursements -  32.45% (against 32.24% in 2021), and the coverage of CMTPL E-policies  is now 49.3% (against 53.3% in 2021).  This company continues to lead  in terms of the share of vehicles with a valid CMPTL policy - 29.52%,  which is below the bar in 2021 (30.87%), but above the level of 2019  (26.87%). The second place in these indicators is held by  "Nairi  Insurance": by the share of insurance premiums - 24.6%, by the share  of indemnifications - 21.73%, by the number of E-policies CMTPL -  17.1%, by the share of vehicles with valid CMTPL - policy - 23.99%.   And the third place is occupied by "INGO Armenia" IC - 13.4%, 14.14%,  11.2%, 14.79%, in terms of premiums, compensations, E-policies, the  number of insured vehicles, respectively. For the other three ICs,  the share of these indicators in the total market total is much less.   It should be noted that there are 6 insurance companies operating in  Armenia, which operate outof 17 from the existing 20 classes, 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" - 16 (the  only one operating in the class of water transport insurance) and  "Rosgosstrakh Armenia" - 15 are licensed.

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