ROSGOSSTRAKH Armenia generated the biggest portion of GWP (AMD 73.6 million), INGO Armenia ranks second (AMD 35.4 million), and SIL Insurance (AMD 21.9 million) ranks third.
Paid claims under the program last year reached AMD 151.84 million. Of these, AMD 94.4 million were paid by ROSGOSSTRAKH Armenia, AMD 42.9 million - by INGO Armenia and AMD 14.5 million - by SIL Insurance, since only these three companies are currently participating in the program.
ArmInfo noted that at the beginning of 2021 the companies did not have any valid contracts (except for one of SIL Insurance), because all obligations were fulfilled. Based on the results of 2020, it is obvious that so far this segment remains unprofitable for insurers.
The agroinsurance program was launched in Armenia in September 2019 and is operating in a pilot mode in six regions. The companies started to sell policies in early 2020. The Central Bank of Armenia intends to expand the program both in terms of covering a wider range of crops and risks covered by insurance. The purchase of an insurance policy is subsidized by the state in the amount of 50-60%, depending on the natural risk. The reinsurer is Swiss Re. The National Agency of Agricultural Insurers was created, whose tasks include development of standard agricultural insurance products, conditions, and regulation of the state subsidizing process; market research and actuarial calculations; training and professional development of loss adjusters; control over partner insurance companies.
*at the following exchange rate:
1 EUR = 641.11 AMD (as of 30.12.2020)
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