STATISTICS: ARMENIA, H1 2018 result: growth of paid claims exceeded growth rate of premiums and amounted to almost 35%

Armenian market increased in local currency by 29.64% to AMD 22 billion (~EUR 39 million) in 1H2018, based on the data of ArmInfo portal. At that, growth rate of paid claims exceeded premiums and amounted to 34.91%.

The best growing trend of premiums during the first six months had health insurance (+112.13%) and accidents insurance (+98.79%). Growth of other classes was rather moderate: property insurance increased only by 7.83%, motor insurance remained almost unchanged with a slight increase in Motor Hull, and premiums of cargo insurance even dropped by 16.07%.

Paid claims in the first half year in the total market exceeded premiums' growth rate a lot, at that some classes' claims growth rate amounted to even more than 1500% (for example, GTPL and other damages to property). Paid claims in cargo insurance had an opposite trend and decreased (-46.36%), repeating the trend of premiums in this class.

Market share of the main classes, compared to the first half year of 2017, saw different trends. The share of motor insurance in general dropped from 61.63% to 47.95%, MTPL market share, in particular, also dropped to 43.48% (vs 56.18% a year ago), and the market share of health insurance, on the contrary, went up to 35.15%.

Armenian market is represented by 6 companies. According to the six months' result of GWP and paid claims the market leader is ROSGOSSTRAKH Armenia (market share is 28.77%), followed by INGO Armenia with a market share of 24.42% and NAIRI Insurance with a market share of 19.41%. However, among all insurers the highest growth rate was demonstrated by ARMENIA Insurance (premiums' growth rate is 64.67%). In contrast with total market's positive GWP trend, total net profit of local insurers dropped by 65.1% (vs decrease by 51.6% a year ago). Based on the ranking of Armenian insurers, prepared by ArmInfo, deterioration in annual trends was caused by the above mentioned higher growth rates of paid claims over premiums.

Access http://xprimm.com/ and download Armenian market figures.





Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

ARMENIA: export insurance in 2018 increased by 73%

In 2018 export insurance recorded a significant growth. Total insured amount was AMD 7.9 billion (+73% y-o-y), at that total insurance premiums exceeded the planned level for 2018-2020 by 31%, as the press office of the Export Insurance Agency of Armenia announced.

2019-01-18

ARMENIA: launch date of agro insurance project is not yet determined

The Agricultural Ministry of Armenia previously announced that around the end of 2018 and beginning of 2019, insurers would start to sell agro insurance policies. However, as of now, launch of the agro insurance project is not yet determined and no memorandums are signed with insurers, as member of the Agricultural Alliance and Council to the CEO of NAIRI company, Artak MARTIROSYAN, announced.

2018-10-24

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all