The report includes planned MTPL changes in the short, mid and long term. According to ArmInfo, long-term plans of the Bureau include a membership in the international Green Card system and expansion of cooperation with CIS countries. In the mid-term, the Bureau plans to liberalize insurance premiums, create a real market for spare parts and a competitive market of car repair shops.
According to the Bureau, from 2011 to 2019, the total number of insured vehicles tripled, GWP almost doubled (for reference - in 1H2020 MTPL GWP amounted to AMD 10.3 billion/EUR 19 million*). At the same time, paid claims during the same period (excluding reserves) increased by 2.8 times (MTPL paid claims in 1H2020 reached AMD 7.2 billion). It is worth noting that the average paid claim amount had quite unstable dynamics from 2011 to 2019 - the highest growth was observed in 2015 and 2018, and the biggest decline was recorded in 2012 and 2016, while the minimum paid claim amount was recorded in 2013. Total number of settled claims over the period under review has more than tripled, with annual increase since 2016, when reforms were implemented to simplify insurance procedures and use of online platforms was expanded.
From 2011 to 2019, MTPL loss ratio increased from 55.1% to 73.9% (in 1H2010 it was 59%, a temporary drop caused by the pandemic). Based on the bonus-malus (accident-free) coefficient, as of June 30, 2020, about 68% of policyholders had bonus class, 15% - malus class and the rest 17% - basic class.
As the Bureau noted, since 2011, many steps have been taken to improve MTPL segment. We can mention here the introduction of the European Accident Statement in March 2016, classification scale of risk level according to the bonus-malus system, transition to a single window system under the "Armenian Single Window for Automative - ASWA" project in 2017, introduction of the direct reimbursement system, online sales of MTPL policies with 5% discounts, etc.
1 EUR = 540.76 AMD (as of July 1st, 2020)