Loss ratio MTPL insurance 68% Jan-Oct, 2023 

ArmInfo. The loss ratio of motor third-party liability insurance (MTPL insurance) was 68% as of  November 1, 2023, against 64% last year, in the first quarter of 2022, Armenian Motor Insurers Bureau. 

The ratio showed an increase amid the liberalization of MTPL  insurance tariffs this April. This January- October, the number of  MTPL insurance contracts in effect showed a 13% increase against  17.4%, with a 3.5% increase in insurance premiums against 16% and a  13.9% increase in insurance indemnities against a 5.7% decrease. 

According to the Armenian Motor Insurers Bureau, the number of  vehicles with MTPL insurance policies showed a moderate increase,  8.6%, in January-October, 2023, as compared with the corresponding  period last year. As of November 1, 2023, the number of vehicles with  MTPL insurance policies reached 647,968, with the number of MTPL  insurance contracts in effect exceeding 1.085mln (999,655 sine  cancelled contracts). The reason for the number of contracts  exceeding that of vehicles is a high number of quarterly (short-term)  contracts. The share of E-policies in the total number of MTPL  insurance contracts remained unchanged, 25%. 

In January-October 2023, the insurance premiums under the contracts  exceeded totaled AMD 22bln ($54.6mln), with insurance indemnities  totaling AMD 14.5bln ($35.9mln). In cases of European accident  statements, the paid indemnities totaled AMD 1.6bln (a decrease of  5.5% against a 41.2% decrease in the corresponding period of last  year), with one indemnity averaging AMD 85,043 (a 9% increase against  a 20.2% decrease). As regards general insurance indemnities, one  payment averaged AMD 232,729 (a 9.4% y/y increase against 0.4% last  January-October). 

Since the end of July, 2023, seven insurance companies have been  operating in Armenia. The EPHESUS insurance company returned to the  market and is preparing to enter the MTPL insurance segment.