ARMENIA: number of vehicles with MTPL coverage stagnant; GWP increased by 7% in January-August

29 September 2021 — Marina MAGNAVAL
According to the Bureau of Motor Insurers of Armenia, the number of vehicles with MTPL policy increased by 1% y-o-y in January-August 2021 (vs a decline of 2.9% a year earlier), however, this growth is still very far from the pre-covid rate of 13% (same period in 2019), ArmInfo reports reports.

On the other hand, in quantitative terms, in January-August 2021, the market almost recovered the pre-covid level - 556,082 units vs 567,483 units.

The number of MTPL contracts concluded for the period increased by 5.6% (vs a decline of 16.8% a year earlier) but is still very far from the growth of 34% two years ago - in January-August 2021, 633,805 contracts were concluded vs 721,821 contracts for the same period in 2019. GWP collected exceeded AMD 13.9 billion/EUR 23.82 million* - an increase of 7% (vs 8.2% decline a year earlier), while the growth rate for the same period two years ago was 25.2%.

e-MTPL policies keep high activity of sales - 135,188 units, despite a slowdown in growth over the past two years from 3.6 times to 63.5%. So far, the share of electronic policies in the total number of MTPL contracts increased from the pre-covid 5% to 21%.

The number of claims in January-August 2021 increased by 14.8% (vs a decline of 12.4% a year earlier). Total amount of paid claims exceeded AMD 10.8 billion (+13% vs a 4.1% decline a year earlier). MTPL loss ratio increased in January-August 2021 to 79% from 61% in the same period last year, exceeding a bit the pre-covid level of 72%.

Rosgosstrakh Armenia holds the lead in terms of its share in the total GWP volume on the market - 30.2%, in terms of paid claims - 32.06%, and over 51% of e-MTPL policies. This company continues to occupy a leading position in terms of the number of vehicles with MTPL policies - 29.96%. The second place based on the mentioned parameters is held by Nairi Insurance, the third - by INGO Armenia.

*at the following exchange rate:

1 EUR = 583.34 AMD (as of 01.09.2021)

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