ArmInfo.The loss rate for compulsory motor third-party liability insurance (CMTPLI) is going down - 65% in the first half of 2022 against 81% in the first half of 2021, and 73% in 2019. The cause is a 19.7% year-on-year increase in the number of insurance contracts, which caused a 21.4% increase in insurance premiums, up to $29mln, with a simultaneous 8.7% decline in insurance indemnities, down to $18.7mln, the Armenian Motor Insurers' Bureau reports.
In the first half of 2022, the number of vehicles holding CMPTL policies increased more significantly than in the corresponding pre-Covid period, which allowed insurance premiums to show nearly the same upward trend as three years ago. In the first half of 2022, the number of vehicles holding CMPTL policies increased by 12.9% per annum against a 2.6% decline in 2021 and 11.8% in 2019. In quantitative terms, as of July 2022, 595,373 CMPTL policy holders were registered against 546,710 in pre-Covid year of 2019. The number of CMTPL contracts approached the pre-crisis rates of increase. During the reporting period, the y-o-y rates of increase showed an upward trend from 0.6% to 19.7% against the pre-Covid 32.9% increase in 2019. But in quantitative terms, more CMPTL-contracts were concluded the first half of 2022 than in the same period of 2019 - 530,284 against 508,130. Insurance premiums totaled AMD 11.8bln ($29mln) against the pre-Covid AMD 10.2bln - a 21.4% year-on-year increase. The average insurance premium for one CMPTL contract amounted to AMD 22,249, with the increase slowing down from 2.7% to 1.4% (against a 5.7% decline in 2019).
Enforced CMPTL contracts showed an 18.4% year-on-year increase (against a 0.2% decline in 2021 and a 29.6% increase in 2019), their number reaching 539,707. Under the contracts, insurance premiums exceeded AMD 12.4bln ($30.5mln), resuming an increase - 18.7% against pre-Covid 14.5%.
The y-o-y increase in the number of canceled CMPTL contracts slowed down - 3.9-fold s to 2.3-fold, their number being 60,091, against a rapid decrease in their number in 2019-2020. Return and returnable premiums amounted to AMD 712.6mln ($1.7mln).
Against this background, sales of CMPTL e-policies remain high - 136,759 in the first half of 2022, with an accelerating year-on-year increase - 52.9% to 53.5%. Moreover, a much slower rate of increase (3.8-fold and more) was recorded as compared with the first half of 2019. In quantitative terms, a 6.5-fold increase was recorded (from 21,199 contracts). As a result, the share of e- policies in the total number of CMPTL contracts reached 26% as of July 2022 against 20% in 2021 and the meager 3.3% in pre-Covid 2019.
In the first half of 2022, 36,862 applications for insurance indemnities were submitted, a 4% decrease as compared with the same period of last year (less than a year ago (against a 15.9% increase in 2021 and a 20% increase in 2019). Paid insurance indemnities exceeded AMD 7.6bln ($18.7mln), with a year-on-year decline of 8.7% (against a 15.5% increase in 2021 and 15.3% increase in 2019). Moreover, 13,528 applications received in cases of simplified registration of road accidents (according to the European protocol), with a 25.1% decline against 33.6% increase in 2021 and a 5.6% increase in 2019). Insurance indemnities paid under the European protocol exceeded AMD 1.4bln, a year-on-year decline of 26.8% (after an accelerating growth from 0.9% in 2019 to 49.1% in 2021), with the average amount being AMD 77,142 - a year-on-year decline of 2.3% (against an 11.6% growth in 2021 and a 4.4% decline in 2019). The total amount of insurance indemnity averaged AMD 206,345, a 4.1% decrease against a 0.4% decrease in the same period of 2021.
In the first half of 2021, 67,824 more vehicles with CMPTL contracts in effect was registered. Specifically, four insurance companies recorded an increase by 74,500, with two insurance companies recording a decrease by 6,700 contracts. The Armenia Insurance company recorded the largest decrease - 5,100, with Nairi Insurance still ensuring the largest increase - 28,200. Nevertheless, Rosgosstrakh Armenia continues leader in terms of the number of vehicles with valid CMPTL policies in effect - 171, 411 (with a year-on- year increase of 7.5% or 12,000 contracts), followed by Nairi Insurance - 146,763 (a 23.8% increase), INGO-Armenia - AMD 85,036 (a 1.8% decline or 1,500 contracts), SIL Insurance - 77,243 (a 54.6% increase or 27,300 contracts), RESO - 72,970 contracts (a 10.6% increase or 7,000 contracts), and Armenia-Insurance - 41,950 (a decline of 10.9%).
Rosgosstrakh Armenia IC is also the leader in terms of the share of insurance premiums, its share being 29.8% (against 30.1% in 2021), insurance indemnities (31.22% against 32.34% in 2021), with the share of CMPTL e-policies being 49.6% (against 52.2% in 2021). This company remains leader in terms of the share of vehicles with valid CMPTL policies - 28.79%, which is below last year's bar (30.22%), but above the level of 2019 (26.51%). The second leader is Nairi Insurance: 25.4% in insurance premiums, 23.1%, in insurance indemnities, 17% in CMPTL e-policies, 24.65% in the number of vehicles with valid CMPTL policies. The third leader is INGO Armenia - 13.24%, 11.2%, 14.28% respectively.
Six insurance companies are operating in Armenia, dealing with 17 of 20 classes, except for railway transport insurance, railroad protective liability insurance, insurance of legal and extra-judicial expenses. The following insurance companies are licensed to work with the largest number classes: INGO Armenia, 16 (the only company issuing water transport insurance policies) and Rosgosstrakh Armenia, 15.
