ArmInfo. The loss ratio for CMPTL in Armenia in January-April 2023 decreased to 62% from 67% in January-April 2022, being much lower than the pre-Covid 73% in January- April 2019.
This was accompanied by a slowdown in the y-o-y growth in the number of concluded contracts from 18.7% to 16.9%, against the background of which there was a slowdown in the growth of insurance premiums from 20.6% to 9.9% - to $ 21.3 million, at the same time, the dynamics of compensation increased by 6.9%, from a 15% drop to $14.2 million, this is evidenced by the data of the Motor Insurers' Bureau of Armenia.
Thus, according to the Motor Insurers' Bureau , the number of vehicles with a CMPTL policy in January- April 2023 increased more modestly than in the pre-Covid comparable period, and the growth in insurance premiums turned were much lower than the upward trend of four years ago (16.1% in 2019). In particular, the y-o-y growth in the number of vehicles with CMPTL policy slowed down from 11.1% to 4.4%, being slightly more modest than the pre-Covid growth of 5.5% in 2019. However, in quantitative terms, the number of vehicles with aCMPTl policy exceeded not only last year, but also the pre-Covid indicator - 613,022 thousand pcs against 587.297 thousand pcs. in 2022 and 517.105 thousand pcs in 2019.
At the same time, the y-o-y growth in the number of CMPTL agreements concluded slowed down, more noticeably moving away from the pre-Covid growth rates. Thus, during the reporting period, y-o-y growth slowed down from 18.7% to 16.9%, against the pre-Covid 21.1% in 2019. But in quantitative terms, the number of CMPTL agreements concluded in January-April 2023 exceeded the level not only of a year ago, but also of the pre-Covid similar period - 392,090 thousand pcs against 335.506 thousand pcs in 2022 and 312.672 thousand pcs in 2019. And the volume of insurance premiums collected on them increased by 9.9% year-on-year - up to 8.2 billion drams ($21.3 million), against the pre-Covid 6.4 billion drams (with an increase of 16.1% in 2019). The average insurance premium per one CMPTL contract amounted to 38,801drams in January-April, and despite the slowdown in y-o-y growth from 1.7% to 0.5%, the current dynamics are more positive than the pre-Covid dynamics (2019), when there was a 4.1% decline.
According to the CMPTL agreements that came into force in January-April 2023, y-o-y growth also slowed down from 17% to 15.7%, with an even greater distance from the pre-Covid uptrend (29.7% in 2019), but at the same time with a quantitatively surplus - 401.007 thousand pcs against 350.923 thousand pcs in 2019. Under these contracts, the volume of insurance premiums reached 8.9 billion drams ($23 million), with a slowdown in y-o-y growth from 16.9% to 8.7%, which was more modest than even the pre-Covid rates of 10.8%. At the same time, the number of terminated CMPTL contracts decreased by 15.4% - to 32.308 thousand pcs, while a 3-fold increase was recorded a year earlier (up to 38.183 thousand pcs), and in pre- Covid 2019 their number, like the current dynamics, decreased by 14.5% (up to 17.861 thousand pcs). And almost the same change in y-o-y dynamics is recorded in the volume of returned or reimbursable premiums - from a 2.6-fold increase to an 8.2% decline, the absolute value of which in January-April 2023 exceeded 403.1 million (over $1 million), moreover, almost the same downward trend (9.5%) was observed in pre- Covid 2019.
Against this background, the activity of sales of CMPTL E-policies noticeably decreased to 95,802 thousand pcs for January-April 2023, with a strong slowdown in y-o-y growth from 64.6% to 6.1%. Moreover, in comparison with the current indicators (January-April 2019), the growth rate slowed down more significantly (from 3.8-fold), but in quantitative terms, a 9-fold increase is recorded (from 11.028 thousand pcs). As a result, the share of E-policies in the total number of CMPTL contracts decreased over the year from 27% to 24%, while significantly exceeding the meager 3.5% in pre-Covid 2019. A significant slowdown in dynamics can be caused by expectations in connection with the transition to the liberalization of CMPTL tariffs from April 1, 2023, which also provides for more noticeable (than the previously existing 5%) discounts on CMPTL E-policies.
In January-April 2023, 24,492 thousand applications for insurance compensation were submitted, which is only 0.5% more than a year ago (against a 12.5% decline in 2022 and a 24.1% growth in 2019). And the volume of payments on them amounted to 5.5 billion drams ($14.2 million), with a y-o-y growth of 6.9% (against a 15% decline in 2022 and a 14.3% growth in 2019).
Moreover, 7.390 thousand applications were received in cases of simplified registration of traffic accidents (according to the European protocol), with a noticeable slowdown in the y-o-y decline from 30.1% to 18.9% (against 12.3% growth in 2019). The volume of compensations paid under the European protocol exceeded 608.3 million drams or $1.6 million, with a slowdown in the y-o-y decline from 32.7% to 13.2% (against 6.4% growth in 2019), and the average amount of one payment amounted to 82.319 thousand drams, with a y-o-y growth of 7% (against a 3.8% decline in 2022 and a 5.3% decline in 2019). For general insurance indemnities, the average amount of one payment amounted to 223.724 thousand drams, with a change in the y-o-y trend from the 2.9% decline to 6.4% growth (against the 8% decline in 2019). In January-April 2023, the number of vehicles with a valid CMPTL contract increased by 25.725 thousand pcs. In particular, 3 ICs recorded an increase in this indicator by a total of 42.7 thousand pcs, while the remaining 3 ICs, on the contrary, had a decline by 17.01 thousand pcs. Moreover, REGO Insurance (previously - RESO) had the largest reduction - by 7.9 thousand pcs, and Nairi Insurance continues to provide the largest growth - by 29.4 thousand pcs. This growth made Nairi Insurance a leader in terms of the number of vehicles with a valid CMTPL policy - 170,271 thousand pcs (with a y-o-y growth of 20.8%), displacing LIGA Insurance, which previously occupied this place, into second place - 167.659 thousand pcs (with a y-o-y decline of 3.3% or 5.7 thousand pcs), the third place is held by INGO Armenia - 83.456 thousand pcs (with a y-o-y decline of 4% or 3.4 thousand pcs), Sil Insurance moved up to the fourth place - 75.157 thousand pcs (with a y-o-y growth of 4.3% or 3.1 thousand pcs), displacing REGO Insurance to the fifth place (formerly RESO) - 65.057 thousand pcs (with a y-o-y decline of 11%), and the sixth place, as before, is occupied by Armenia-Insurance - 51.422 thousand pcs (with ay-o-y growth of 25% or 10.2 thousand pcs).
As a result, Nairi Insurance became the leader in terms of the share of vehicles with a valid CMPTL policy - 27.78%, as well as in terms of the share of insurance premiums in the total volume of the market - 27.9%, displacing LIGA Insurance that previously held the lead in these indicators to the second place - 27.35% and 26.8% (in terms of the share of vehicles with CMPTL policy and the share of insurance premiums). But in terms of the share of indemnities and the coverage of E-policies CMTPL, the leadership continues to be held by LIGA Insurance - 28.95% and 45.7%, respectively. The second place in terms of the share of indemnities, as before, is occupied by Nairi Insurance - 26.1%, which, in terms of the coverage of E- policies of CMPTL, moved to the 3rd place - 15.1%, with a meager difference, losing the second place in this indicator to INGO Armenia - 15.4%. The third place in terms of the share of insurance premiums, indemnities, and the share of vehicles with a valid CMPTL policy continues to be occupied by INGO Armenia - respectively 13.5%, 12.05% and 13.61%. With a slight difference in the share coverage of the abovementioned indicators, after INGO Armenia follows Sil Insurance. And for the remaining 2 ICs, the share of these indicators in the overall market result is much less. In terms of the number of contracts, the largest coverage is recorded by Nairi Insurance and LIGA Insurance - 25.72% and 25.33%, respectively, Armenia Insurance is in third place (12.84%), Sil Insurance is in fourth place (12.57%), INGO Armenia raks fifth (12.42%), and REGO Insurance ranks sixth (11.12%).
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. In terms of the largest number of classes, INGO Armenia - 16 (the only one operating under the class of water transport insurance) and Armenia Insurance- 16 (the only one operating under the class of insurance of railway transport) are licensed.
In the insurance market of Armenia, in December 2022, the insurance companies RESO and Rosgostrakh Armenia (RGS) went on a rebranding - in the first case, the change of name to REGO was accompanied by a change in the composition of shareholders, and in the second case was simply renamed to LIGA Insurance. As for INGO Armenia, which is indirectly owned by the Russian Ingosstrakh, this company continues to operate in the Armenian market, but with the adjustment of its actions in the context of sanctions (in relation to Ingosstrakh), under the close supervision of the regulator. (The estimated exchange rate of the dram against the dollar as of April 30, 2023 is 386.64 AMD/$1)
