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).
