ARMENIA: MTPL loss ratio in the first quarter approached the level of 2017

19 April 2022 —
For the first quarter of 2022, the number of vehicles with MTPL policy in Armenia increased by 10.4% y-o-y (vs a decline of 6.5% a year earlier and an increase of 3.6% in 2019). This growth is higher than the level of the corresponding pre-Covid period, thus allowed MTPL GWP to exceed the trend of two years ago, ArmInfo reports.

In quantitative terms, as of April 2022, the number of such vehicles amounted to 575.781 thousand units (vs 509.001 thousand units in 2019).

Besides, resumption of growth, approaching the pre-Covid level, was also observed in the number of MTPL contracts concluded. For the first quarter, growth was 15.9% (vs a decline of 4.9% a year earlier and an increase of 18.7% in 2019). However, in quantitative terms, insurers managed to conclude more MTPL contracts than in the same period of 2019 (249.584 thousand vs 230.792 thousand). GWP on them increased by 17.5%, exceeding AMD 5.6 billion/~EUR 10.48 million (vs AMD 4.7 billion in the pre-Covid period).

The high activity of sales of e-MTPL policies remains - 68.498 thousand 1Q2022 (+65.1%). As a result, the share of electronic policies in the total number of MTPL contracts reached almost a third (27%) by April 2022, vs 19% in 2021 and 3.3% in 2019.

The number of claims for insurance compensation in 1Q2022 decreased by 9% y-o-y (vs an increase of 2.3% in 2021 and 19.4% in 2019). Total paid claims exceeded AMD 3.8 billion drams (-13.5%). MTPL loss ratio decreased in the first quarter to 68% from 88% in 2021, which is below the pre-Covid level of 73.7% in 2019 and close to the level of 2017 (67%). According to experts, this is due to an increase in the number of concluded contracts and an increase in GWP, while reducing paid claims.

ROSGOSSTRAKH Armenia holds the lead in terms of its share in total GWP volume (31.3%) and the share of paid claims (31.72%), as well as the share of vehicles with MTPL policy (29.82%). The second position belongs to NAIRI Insurance.

*EUR 1 = AMD 534.22 (01.04.2022)