ArmInfo. Following the results of 9 months of 2022, the share of the corporate component in the premium portfolios of Armenian insurers, began to prevail over the retail component even more - 53.8% (25.6 billion drams) against 46.2% (21.97 billion drams) , while the gap was smaller in a similar situation a year ago - 51.8% and 48.2%, respectively. According to the Financial Rating of Insurance Companies of Armenia as of September 30, 2022, prepared by ArmInfo, the capacity of the corporate insurance market accelerated growth more noticeably, from 14% to 30.5%, than the capacity of the retail insurance market, from 10.2% to 20.1%.
Based on the results of 9 months of 2022, corporate insurance prevails in the premium portfolios of three companies - INGO Armenia, RosGosstrakh Armenia and Armenia Insurance, and in the remaining three insurance companies - Nairi Insurance, RESO and Sil Insurance - retail trade prevails. The largest gap between corporate and retail insurance is still maintained by INGO Armenia- 69.1% against retail 30.9%, and the smallest gap is maintained by RosGosstrakh Armenia - 51.3% against retail 48.7%. And of the three insurance companies, which are dominated by the retail component, the maximum gap is maintained by RESO - 68.8% against 31.2% corporate and the minimum gap is maintained by for Sil Insurance - 51.9% against 48.1% corporate. A year earlier, for 9 months of 2021, INGO Armenia also distinguished itself by the largest dominant of the corporate portfolio in premiums (63.9%), and RESO distinguished itself by the dominant retail component (67.7%).
In terms of insurance compensations, the share of payments to retail customers for the first 9 months of 2022, accounted for 64.9% or 13.8 billion drams, to corporate - 35.1% or 7.5 billion drams, against 64.1% and 35.9%, respectively, a year earlier. At the same time, the growth of compensations for both individuals and legal entities has greatly weakened from 12-31% to 7-3%. During the reporting period, only one insurance company in the reimbursement portfolio was dominated by the corporate component - INGO Armenia (53.1%), while the remaining five ICs had a retail component (the largest of Rosgosstrakh Armenia - 91.8%), as it was a year ago, INGO Armenia the only dominant in the corporate component (56.8%), and Rosgosstrakh Armenia (88.1%), as now, was the most retail dominant.
In terms of premiums transferred for reinsurance, the share of corporate insurance for the first 9 months of 2022 amounted to 82.9% or 6.6 billion drams (with an acceleration of y-o-y growth from 18% to 47%), and retail insurance - 17.1% or 1.4 billion drams (with a slowdown in y-o-y growth from 77% to 31%), against 81.2% and 18.8%, respectively, a year earlier. The highest dominance of the corporate component in the premiums listed for reinsurance was recorded by RESO - 95.2% against retail 4.8%, and the smallest gap was recorded by Sil Insurance - 50.9% against retail 49.1%. A year earlier, Rosgosstrakh Armenia recorded the largest gap between the corporate component and the retail component - 94.5% versus 5.5%, and Sil Insurance the recorded the smallest gap - 69.4% versus 30.6%.
Armenian insurers concluded 458,553 contracts in Q3 2022, with a slight acceleration in y-o-y growth from 11.7% to 12.7%. Thus, the number of insurance contracts in force as of October 1, 2022 amounted to 942,866 with an increase of 1.3% from the 1.8% decline in y-o-y dynamics. Among the classes, the leading position in terms of the number of concluded contracts is held by CMPTL- 320.740 thousand contracts in Q3, the number of valid contracts for which by October 1 reached 573.860 thousand contracts. Among the voluntary types of insurance, in terms of the number of contracts signed quarterly, travel insurance has became the most popular - 53.680 thousand contracts, and the previously leading accident insurance was is in 2nd place - 41,720 thousand contracts.
But in terms of the number of contracts in force by October 1, among voluntary types accident insurance continues to hold the primacy - 167.639 thousand contracts, after which the 2nd and 3rd places are held by medical insurance and property insurance - 64.009 thousand and 55.444 thousand contracts respectively. Moreover, property insurance occupies the same third place in terms of the number of quarterly concluded contracts - 13.647 thousand. Rosgosstrakh Armenia is the leader in terms of the number of contracts valid by October 1 in the CMPTL segment - 161.904 thousand contracts (of which 78.652 thousand were concluded in Q3), which also holds the lead in the number of contracts in the segment of medical insurance - 37.2 thousand contracts (of which 2.8 thousand contracts were concluded in Q3 alone). INGO Armenia it the leader in the number of contracts in the accident insurance segment - 68.658 thousand contracts valid as of October 1 (of which 18.129 thousand contracts were concluded in Q3).). The leader in CASCO is Nairi Insurance (6.458 thousand contracts valid as of October 1, of which 2.031 thousand were concluded in Q3). INGO Armenia distinguished itself with the largest number of contracts in insurance of people traveling abroad (travel insurance), which had 8,199 thousand valid contracts by October 1, but it managed to conclude 25,096 thousand contracts in Q3.
And as for the agricultural risk insurance that started in 2020, which has been carried out by only 3 insurance companies since its launch (Rosgosstrakh Armenia, INGO Armenia and Sil Insurance), the number of valid contracts for agro-risk insurance as of October 1, 2022, amounted to 3.9 thousand, but only one contract was concluded in Q3. Moreover, according to the number of agricultural insurance contracts in force as of October 1, 2022, INGO Armenia took the first place (1.495 thousand), and Rosgosstrakh Armenia was the only one that concluded contract for Q3.
In terms of the number of contracts concluded for the third quarter, Nairi Armenia Insurance Company took the lead - 107.890 thousand, displacing Rosgosstrakh Armenia Insurance Company second - 103.793 thousand, INGO Armenia Insurance Company third - 97.427 thousand, RESO Insurance Company fourth. - 58.706 thousand, the fifth - IC "Sil Insurance" - 48.089 thousand, the sixth - IC "Armenia Insurance" - 42.648 thousand. In all six companies, the dominant in the concluded contracts falls on OSAGO with a maximum of Armenia Insurance (83.4%) and a minimum for INGO Armenia (43.9%).
The largest growth in quarterly concluded contracts was recorded for general liability insurance - 7.1-fold (against 77.5% growth a year earlier), medical insurance - by 86.5% (against 19% growth a year earlier), travel insurance - by 67.3% (against a 12-fold increase a year earlier) and cargo transportation insurance - by 66.1% (against 4.8% growth a year earlier). Of these, in terms of y-o-y growth of contracts in force as of October 1, general liability insurance is also in the lead - 3.2-fold (against 7.5% growth a year earlier), followed by travel insurance - 2.5-fold(against 3.7% -growth a year earlier), and cargo transportation insurance - by 87.3% (against 8.4% growth a year earlier). The y-o-y decline in quarterly concluded contracts was recorded for two classes of insurance - against accidents and financial damage - by 31-32%.
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. The agricultural risk insurance class has been added to the IC reports since the Q2 2020, but it is not added 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) lead in licensing the largest number of classes. (As of September 30, 2022, the estimated exchange rate of the dram against the dollar was 405.65 AMD/$1).
