Saturday, April 15 2023 14:35

ArmInfo. The loss ratio of motor third-party liability insurance (MTPL insurance) was 62% in the first  quarter of 2023 against 69% in the first quarter of 2022, and 74% in the first quarter of 2019. The number of MTPL insurance contracts showed an increase from 15.9% to 17.8%, with a 12.8% increase in insurance premiums ($16.3mln) against 17.5% and a 6.7% increase in insurance indemnities (up to $10.7mln) against a 13.5% decrease. 

According to the Armenian Motor Insurers Bureau, the number of  vehicles with MTPL insurance policies was higher in the first quarter  of 2023 against that in the corresponding pre-COVID period, which  allowed insurance premiums to exceed the upward trends four years ago  (10.4% in the first quarter of 2019).  Specifically, the number of  vehicles with MTPL insurance policies showed a lower year-on-year  increase of 5.7% (against 10.4%), being higher than 3.6% in 2019.  However, the number of vehicles with MTPL insurance policies exceeded  both last year's and the pre-COVID number - 608,810 against 575,781  in 2022 and 509,001 in 2019 respectively. 

Due to higher rates, the year-on-year increase in the number of MTPL  insurance contracts neared the pre- COVID level. Specifically, the  period under review saw a year-on-year increase from 15.9% to 17.8%  against 18.2% in 2019. In the first quarter of 2023, the number of  MTPL insurance contracts reached 293,910 against 230,792 in 2019. The  insurance premiums under the contracts totaled AMD 6.3bln ($16.3mln),  a 12.8% year-on-year increase, against AMD 4.7bln in the pre-COVID  period (a 10.4% increase in 2019). In the first quarter, the  insurance premium under one MTPL insurance contract averaged AMD  21,559 - a 4.2% year-on-year decrease (against 1.4% increase the  previous year), which was the case in the pre-COVID period as well -  a 6.6% decrease.   

The first quarter of 2023 saw a year-on-year increase from 13.2% to  16.1% in the number of effective MTPL insurance contracts, reaching  the pre-COVID rates, with 301,411 contracts signed against 251,510 in  2019. Insurance premiums under the contracts exceeded 6.9bln  ($17.9mln) with an 11.3% year-on-year increase against 12.5% and 6.5%  in the pre-COVID period. A total of 24,468 MTPL insurance contracts  were canceled (a 15.9% decrease) against a 22.3% increase last year,  with a higher-rate decrease in 2019.  The reimbursed and reimbursable  insurance premiums showed an 8.2% decrease against a 21.5% increase,  with their amount exceeding AMD 305.4mln ($786,200) in the first  quarter of 2023, with a 17% decrease in 2019. 

In the first quarter of 2023, the number of sold e-MTPL insurance  policies showed a decrease, down to 71,051, with a 4.1% year-on-year  increase against 65.1%. Much slower rates of increase were recorded  as compared with the first quarter of 2019 (4-fold and up), with a  9-fold increase in the actual number of sold insurance policies (from  7,698). The share of e-policies in the total of MTPL insurance  contracts showed a year-on-year decrease from 27% to 24%,  significantly exceeding the 3.3% level in 2019. This "reduced  dynamics" is mostly probably the result of the liberalization of MTPL  insurance tariffs from April 1, 2023, which provided for higher  discounts on MTPL insurance policies against the previous 5%. 

In the first quarter of 2023, 18,659 applications for insurance  indemnities were submitted, a 0.2% decrease as compared with the  corresponding period last year (against a 9% decrease in 2022 and  19.4% increase in 2019). The paid indemnities totaled AMD 4.1bln  ($10.7), with a 6.7% year-on-year increase (against a 13.5% decrease  in 2022 and a 10.1% increase in 2019). A total of 5,811applications  involved cases of European accident statements, with a year-on-year  decrease from 23.7% to 22.2% (against a 10.5% increase in 2019). The  paid indemnities totaled AMD 468.8mln or $1.2mln with a year-on-year  decrease from 26.8% to 18.6% (against a 3.6% increase in 2019), with  one indemnity averaging AMD 80,670, with a 4.7% year-on-year increase  (against a 4% decrease in 2022 and a 6.3% decrease in 2019). In the  first quarter of 2023, an additional 33,029 vehicles with effective  MTPL insurance contracts was recorded.  Specifically, three insurance  companies recorded 47,500 more contracts, whereas three other  insurance companies recorded 14,400 fewer contracts. The LIGA  Insurance company recorded the largest decrease, 6,700 fewer  contracts, with the Nairi Insurance company recording the highest  increase in the number of contracts - 33,200 more contracts. Thus,  the Nairi Insurance company is the leader in the number of vehicles  with effective MTPL insurance policies - 169,692 (a 24.3%  year-on-year increase), with LIGA Insurance being the second leader,  165,032 (a year-on-year decrease of 4%), followed by INGO Armenia,  83,076 (a year-on-year decrease of 4.4% or 3,800), Sil Insurance,  71,370 (a 3.5% year-on-year increase or 2,400), REGO insurance  company, 67,567 (a 5.6% year-on-year increase or 3,980), Armenia  Insurance, 52,073 (a 29.4% year-on-year increase or 11,800). 

As a result, Nairi Insurance company's share in terms of vehicles  with effective effective MTPL insurance policies (27.87%), with its  share in insurance premiums being 28%, followed by LIGA Insurance  (once the leader) - 27.11% and 26.5% respectively. However, LIGA  Insurance remains the leader in terms of indemnities and MTPL  insurance coverage - 29.03% and 46.7%, respectively, followed by  Nairi Insurance - 25.34% and 18.6% respectively, INGO Armenia - 14.6%  in insurance indemnities, 12.1% in MTPL insurance coverage and 13,65%  in the number of vehicles with MTPL insurance policies. SIL Insurance  is a little behind, with the two other insurance companies reporting  much lower figures. 

Six Armenian insurance companies are operating 18 of 20 classes of  insurance, expect for the Railway Third Party Liability Insurance and  legal and extra-judicial expenses insurance. INGO Armenia (the only  company providing water transport insurance) and Armenia Insurance  (the only company providing rail transport insurance) are the leaders  in the number of classes of insurance - 16. 

Last December, RECO and Rosgosstrakh companies implemented rebranding  projects: the RECO company was renamed REGO, with new shareholders,  and the Rosgosstrakh company was renamed LIGA Insurance.  As regards  INGO Armenia, which is indirectly owned by the Russia-based  Ingosstrakh, the company continues working in Armenia's market,  adapted to the sanctions imposed on Ingosstrakh, under the  regulator's supervision. (the AMD/USD exchange rate was 388.48/$1 on  March 31, 2023).