ARMENIA: MTPL tariffs increase for the first time in 10 years

16 February 2022 —
On February 7, 2022, the cost of MTPL policies in Armenia increased, as the decision of the Board of Directors of the Bureau of Motor Insurers of Armenia dated December 23, 2021, aimed at increasing MTPL GWP due to a strong increase in paid claims and unprofitability in the segment last year, came into force, ArmInfo reports.

According to the Bureau's statement, MTPL tariffs have not changed for 10 years since introduction of this insurance type in the country. Despite the measures to digitalize services, partial transition to the European Accident Statement, the level of unprofitability in MTPL could not be reduced.

It is noted that in 2021, fewer MTPL contracts were concluded in Armenia than in 2019 (1.023 million units vs 1.202 million units). At the same time, the number of claim files in 2021 reached 78,255, which is 17.5% more y-o-y. According to official data, MTPL loss ratio increased in 2021 to 79% from 65% in 2020, exceeding the level of 74% in 2019.