ArmInfo. In the insurance market of Armenia, the loss ratio for compulsory motor third-party insurance increased to the 81.5% by December 2024, from last year's 70%. This is evidenced by data from the Bureau of Motor Insurers of Armenia. The growth of the ratio in January-November 2024 was observed against the background of a deterioration in the annual dynamics of the number of active contracts - from 12.8% growth to 0.8% decline, an imperceptible acceleration of the already moderate growth of insurance premiums - from 3.4% to 9.4%, in parallel with which a pronounced acceleration of double-digit growth in compensation was recorded from 15.7% to 21.9%. According to the Bureau, the number of vehicles with OSAGO policies in January-November 2024 increased slightly - by only 1.7% y/y, while a year ago the growth was 9.9%. In quantitative terms, by the beginning of December 2024, there were 670,527 vehicles with MTPL contracts in the country, but the number of active contracts was 1.192 million (minus terminated ones - 1.081 million).
The excess of contracts over the number of cars is explained by the large number of quarterly (short-term) contracts. In the total number of MTPL contracts, the share of E-policies increased over the year from 25% to 31%, amounting to 372,932 thousand, with an acceleration of annual growth from 16.3% to 23.7%. According to the results of 11 months of this year, the volume of insurance premiums collected under current contracts reached 26.6 billion drams ($67.4 million), and the volume of insurance compensation exceeded 19.9 billion drams ($50.5 million). Moreover, the volume of compensation paid in cases of simplified registration of road accidents (Europrotocol) increased by 32.9% over the year (with an exit from last year's 3.7% decline) - to 2.34 billion drams ($5.9 million), and the average size of one payment accelerated in annual growth from 8.5% to 16.8%, reaching 99,018 thousand drams ($251, against $211 a year ago). In terms of total insurance compensation, the average size of one payment accelerated in annual growth less noticeably - from 10.1% to 12.2%, totaling 262,383 thousand drams ($665, against $581 a year ago).
According to the Bureau, the largest number of vehicles with an MTPL policy are covered by LIGA Insurance Insurance Company - 142,946 thousand units, which also has the highest loss ratio for MTPL at 90%. A slightly smaller number of vehicles with an MTPL policy are covered by Nairi Insurance and Sil Insurance - 134.1 thousand units and 131.3 thousand units, respectively, for which the loss ratio for MTPL is 72% and 84%. The largest volume of insurance premiums under current MTPL contracts are also provided by Nairi Insurance and LIGA Insurance - 5.9-5.5 billion drams (22-21% of the total volume). They are also leaders in the volume of compensation in this class - 4.4-5.3 billion drams (22-27% of the total volume). LIGA Insurance and Nairi Insurance also have the highest payouts for simplified accident registration cases (Europrotocol) - 29-22% of the total market volume. Armenia Insurance leads in the number of E-policies with 123.8 thousand or 33% of the total number of such contracts in the market. It also ranks first in the total number of active contracts - 242.3 thousand or 20% of the total number of active contracts in the market.
It should be noted that since April 2023, the transition to liberalization of tariffs for compulsory motor third party liability insurance has started in Armenian insurance market has started, and after a quarter, the loss ratio for this class began to grow. Note that since the end of July 2023, 7 insurance companies have already been operating in Armenia, since EFES Insurance Company has returned to the market. It is currently preparing to enter the compulsory motor third party liability insurance (SMTPLI) segment. (The calculated exchange rate of the dram against the US dollar as of 30.11.2024 was AMD394.64 $1, compared to AMD 402.65/$1 the previous year).
