ARMENIA: MTPL loss ratio continued to grow, reaching 66% by October 1

24 October 2023 — Marina MAGNAVAL
On the insurance market of Armenia, MTPL loss ratio continued to grow and reached 66% as of October 1, 2023 (vs 64% a year ago), ArmInfo reports with reference to the Bureau of Motor Insurers of Armenia.

This increase began to be observed against the background of the transition from April 2023 to the MTPL liberalization, under which in January-September the growth in the number of existing contracts slowed down - from 17.1% to 12.5%, MTPL GWP growth sharply slowed down - from 15.6% to 3%, and the dynamics of paid claims grew by 12.4%.

According to the Bureau, the number of vehicles with MTPL policy in January-September 2023 increased slightly - by 6.7% y-o-y. Of the total number of MTPL contracts, 25% are electronic policies.

During 9M2023, GWP collected under existing contracts exceeded AMD 19.7 billion (USD 50.1 million), and paid claims reached AMD 12.7 billion (USD 32.4 million).

It is noted that since the end of July 2023, 7 insurance companies have already been operating in Armenia, as the EFES company has returned to the market, and is still preparing to enter the MTPL segment.