ArmInfo. In the insurance market of Armenia, the loss ratio for Compulsory Motor Third Party Liability (CMPTL) continues to grow, up to 66% as of October 1, 2023, from last year's 64%, according to the data from the Motor Insurers' Bureau of Armenia.
An increase in the loss ratio began to be noticed in April of this year against the background of the liberalization of CMPTL tariffs, under the conditions of which the growth of the number of existing contracts slowed down in January-September - from 17.1% to 12.5%, the growth of insurance premiums sharply slowed down - from 15.6% to 3%, and the compensation dynamics changed from a 6.5% decrease to a 12.4% increase.
According to the Bureau, the number of vehicles with CMPTL in January-September 2023 increased slightly - by 6.7% per annum. In quantitative terms, by the beginning of October 2023, there were 634.866 thousand vehicles with CMTPL contracts in the country, however, the number of existing contracts amounted to 968.482 thousand (with the deduction of terminated ones - 892.689 thousand). The excess of the number of contracts over the number of vehicles is explained by the large number of quarterly (short- term) contracts. Of the total number of CMTPL contracts, 25% are E-policies.
Based on the results of 9 months of this year, the volume of insurance premiums collected under existing contracts exceeded 19.7 billion drams ($50.1 million), and the volume of insurance compensations reached 12.7 billion drams ($32.4 million). Moreover, the volume of compensation paid in cases of simplified registration of road accidents (Euro protocol) decreased over the year by 7.2% - to 1.4 billion drams, and the average size of one payment, on the contrary, increased by 8.2% - to 84.013 thousand drams. For general insurance compensations, the average size of one payment increased over the year by 9.6%, amounting to 232.196 thousand drams.
With the return of EFES insurance company to the insurance market of Armenia, 7 insurance companies are already operating in the country since the end of July 2023, the entry of the latter into the Compulsory Motor Third Party Liability (CMPTL) segment is yet to come.
