ARMENIA: in January-September, the number of vehicles with MTPL policy increased by 1.3% y-o-y

8 November 2021 — Marina MAGNAVAL
According to the Bureau of Motor Insurers of Armenia, the number of vehicles with MTPL policy in January-September 2021 increased by 1.3% y-o-y (vs a decline of 3.6% a year earlier for the same period), however, it is still far behind the pre-covid growth rate of 14.3 % for the same period in 2019.

According to the experts, such a slow growth in the number of vehicles restrains the growth of premiums, ArmInfo reports.

At the same time, in quantitative terms for 9 months of this year, it was still possible to approach the pre-covid level - 560.346 thousand units vs 573.817 thousand units 2 years ago.

The growth in the number of concluded MTPL contracts has resumed, however, it is far behind the pre-covid rates - for the reporting period, a 6.1% increase (vs a 17.9% decline a year earlier and a 35% growth two years ago). Thus, in January-September 2021, fewer MTPL contracts were concluded than in the same pre-covid period - 771,895 units vs 828 791 units. And GWP exceeded AMD 15.8 billion/EUR 28.38 million* (an increase of 7.1% vs a decline of 8.6% a year earlier, and an increase of 26.7% two years ago).

It is worth noting that sales of electronic MTPL policies remain highly active - their share in the total number of MTPL contracts increased from pre-covid 5% to 22%.

In January-September 2021, the insurers received 14.5% more applications for insurance compensation than a year earlier (vs a decline of 12.2% in the same period in 2020). The volume of payments exceeded AMD 12.1 billion, which is 12.3% more y-o-y (vs a 4% decline a year earlier). The MTPL loss ratio increased in January-September 2021 to 78% from 63% in the same period of 2020.

Out of 6 operating insurance companies, ROSGOSSTRAKH Armenia remains the leader in the number of vehicles with a valid MTPL policy - 167.635 thousand units (-7.9%), NAIRI Insurance ranks second - 129.561 thousand units. (+15.6%). ROSGOSSTRAKH Armenia also holds the lead in terms of its share in the market MTPL GWP - 30.3% and in terms of its share in paid claims - 31.97%. The second position belongs to NAIRI Insurance: its share in MTPL GWP is 23.4%, and in paid claims - 18.78%.

*1 EUR = 556.73 AMD (September 30th, 2021)

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