ARMENIA: the share of e-MTPL contracts in 1H2020 increased to 13%

23 July 2020 — Marina MAGNAVAL
The share of e-MTPL policies from the total number of MTPL contracts reached 13% as of July 2020 (vs 4% a year ago), ArmInfo reports.

According to the Bureau of motor insurers of Armenia, in the first half of 2020, the number of e-MTPL policies increased 2.8 times y-o-y, while the total number of all concluded MTPL contracts, on the contrary, dropped by 13.3%.

Total MTPL GWP decreased by 7.4% y-o-y to AMD 9.4 billion (~EUR 17.38 million*), however, the number of vehicles with MTPL policy remained practically unchanged (vs their growth by 11.8% in the first half of 2019). At the same time, the average MTPL premium size increased by 6.8%.

The analysts of ArmInfo believe that the e-MTPL growth is due to discounts given for purchasing online, as well as transition of insurers to a remote operations mode during the pandemic period.

Total number of MTPL insurance claims in 1H2020 decreased by 10.5%, and total volume of claims paid went down as well by 2.5% to AMD 7.2 billion. This contributed to a decline of MTPL loss ratio in general to 59% (vs 73% in 1H2019).

* for the following exchange rate:

1 EUR = 540.76 AMD (as of 01.07.2020)

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