Monday, January 23 2023 16:24

ArmInfo.The CMPTL loss ratio in Armenia decreased from 79% to 66% in 2022, being even lower than the pre-Covid 74% in 2019. This was due to an increase in the number  of concluded contracts by 16.1% year on year, as a result of which  insurance premiums rose by 15.6% to $67.3 million, while  claims  simultaneously decreased by 4.6% to $39.8 million, according to the  data of  Armenian Motor Insurers'  Bureau .

Thus, according to the Armenian Motor Insurers'  Bureau, the number  of vehicles with a CMPTL policy increased more moderately in 2022  than in the pre-Covid comparable period, which did not allow the  volume of insurance premiums to reach the pace of the upward trend of  three years ago. In particular, the growth in the number of vehicles  with a CMPTL policy slowed in 2022 to 4.9% per annum from 9.6% in  2021, and turned out to be much lower than the pre-Covid rising 18.5%  in 2019. However, in quantitative terms, the number of vehicles with  a CMPTL policy exceeded not only last year's, but also the pre-Covid  indicator - 606,596 thousand units, against 578.521 thousand units in  2021 and 602.457 thousand units in 2019.

An acceleration of y-o-y growth was also observed in the number of  CMPTL agreements concluded, but so far it has not been possible to  approach the pre-COVID upward rates. Thus, during the reporting year,  growth accelerated from 9.9% to 16.1%, much less than the pre-Covid  33.2% growth in 2019. But in quantitative terms, the number of CMPTL  agreements concluded in 2022 almost equaled the level of 2019 - 1.188  million units against 1.202 mln. And the volume of insurance premiums  collected on them increased by 15.6% in 2022 - up to 26.5 billion  drams ($67.3 million), against the pre-Covid 24.2 billion drams (with  an increase of 23.5% in 2019). The average insurance premium per one  CMPTL contract amounted to 22.303 drams in the reporting year,  lingering in the decline with a slowdown from 1% to 0.5%, which was  also observed in the pre-Covid year (2019), when a more noticeable  decline by 7.3% was recorded.

Under the CMPTL agreements that came into effect in 2022, y-o-y  growth also accelerated from 9.9% to 16%, far short of the 32.8%  growth in pre-Covid 2019, exceeding 1.188 million units in  quantitative terms (against 1.206 million units in 2019). Under these  contracts, the volume of insurance premiums reached 26.4 billion  drams ($67.1 million), with a y-o-y growth slightly below the  pre-Covid rates - 15% versus 19.4%. At the same time, the y-o-y  growth in the number of terminated CMPTL contracts significantly  slowed down - from 3.1-fold to 38.5%, amounting to 124.666 thousand  pieces, while in 2019-2020 their number was declining rapidly. And  almost the same slowdown in y-o-y growth was observed in the volume  of premiums returned or repayable - from 2.7-fold to 36.6%, the  absolute value of which in 2022 exceeded 1.5 billion ($3.8 million).

Against this background, the activity of sales of CMTPL E-policies  remains - 286.936 thousand units for 2022, despite the emerging  slowdown in y-o-y growth from 73.4% to 22.2%. Moreover, in comparison  with the current indicators (January-December 2019), the growth rate  slowed down significantly (3.6-fold), but in quantitative terms, an  increase of 4.6-fold  is recorded (from 62.672 thousand units). As a  result, the share of E-policies in the total number of CMPTL  contracts increased in 2022 to 24% from 23% in 2021, significantly  exceeding the meager 5% in pre-Covid 2019.

73,697 thousand applications for insurance compensation were  submitted in 2022, which is 5.8% less than a year ago (against 17.5%  growth in 2021 and 17% growth in 2019). And the volume of payments on  them amounted to 15.7 billion drams ($39.8 million), with a y-o-y  decline of 4.6% (against 13.7% growth in 2021 and 11.6% growth in  2019). Moreover, 25.633 thousand applications were in cases of  simplified registration of road accidents (according to the European  protocol), with a reversal of y-o-y dynamics towards a 26.1% decline  from 24.1% growth in 2021 (against 2.2% growth in 2019). The volume  of compensations paid under the European protocol amounted to 2.01  billion drams or $5.1 million with a y-o- y  decline of 38.5% (after  the dynamics of the 8.7% decline in 2019 was released by 59.5% growth  in 2021), and the average size of one payment amounted to 78.268  thousand drams, with a y-o-y decline of 16.8% (against 28.6% growth  in 2021 and 10.7% decline in 2019). For general insurance  indemnities, the average amount of one payment amounted to 212.587  thousand drams, with a y-o-y trend change from the 3.2% decline to  1.3% growth (against 4.7% decline in 2019).

In 2022, the number of vehicles with a valid CMPTL contract increased  by 28,075 thousand units. In particular, for 3 ICs, this indicator  increased by a total of 43.5 thousand points, and for the remaining 3  ICs, on the contrary, it decreased by 15.4 thousand points. Moreover,  the largest reduction is observed for Rosgosstrakh Armenia - by 7.4  thousand units, and Nairi Insurance continues to provide the largest  growth - by 29.2 thousand units. Nevertheless, Rosgosstrakh Armenia   IC  continues to be the leader in terms of the number of vehicles  with a valid CMPTL policy - 166.156 thousand units (with a y-o-y  decline of 4.3%), the second place is held by Nairi Insurance -  163.860 thousand units (with a y-o-y growth of 21.7%), the third -  INGO Armenia - 84.528 thousand units (with a y-o-y decline of 4.7% or  4.2 thousand units), Sil Insurance moved up to the fourth place-  71.623 thousand units (with a y-o-y growth of 9.3% or 6.1 thousand  units), displacing the RESO, which ranks 5th - 70.229 thousand units  (with a y-o-y decline of 5.2% or 3.8 thousand units), and the sixth  place, as before, is occupied by Armenia-Insurance - 50.200 thousand  units (with a y-o-y growth of 19.4% or 8.2 thousand units).  IC  Rosgosstrakh Armenia also holds the lead in terms of the share of  insurance premiums in the total volume of the market - 28% (against  30.3% in 2021), in terms of the share of reimbursements - 30.44%  (against 31.86% in 2021). ), and its coverage of CMTPL E-policies is  now 48.1% (against 49.5% in 2021).  This company continues to lead in  terms of the share of vehicles with a valid CMPTL policy - 27.39%,  which is below the 2021 level (30%). The second place is held by  Nairi Insurance: in terms of the share of insurance premiums - 27.1%,  in terms of the share of indemnities - 23.33%, in terms of the number  of CMPTL E-policies - 17.7%, in the share of vehicles with a valid  CMTPL policy - 27.01%, with a y-o-y increase in the share of all four  indicators. The third place is occupied by INGO Armenia: in terms of  the share of insurance premiums - 13.4%, in terms of the share of  indemnities - 13.16%, in terms of the coverage of CMPTL E-policies -  11.5%, in terms of the share of vehicles with a valid CMPTLpolicy -  13.93%. Sil Insurance follows INGO Armenia IC with a slight  difference in the share coverage of the abovementioned indicators.  And for the 2 other ICs, the share of these indicators in the overall  market result is much less.

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 is licensed  - 16 (the only one operating in the water transport insurance class),  Armenia Insurance - 16, and Rosgosstrakh Armenia" - 15. 393.57  AMD/$1).