ARMENIA: MTPL loss ratio decreased to 62% in 1Q, while GWP increased by 12.8%

20 April 2023 —
In the first quarter of 2023, MTPL loss ratio in Armenia decreased to 62% (vs 69% a year earlier and 74% in 1Q2019). At the same time, there was an increase in the number of concluded contracts by 17.8%, as evidenced by the data of the Bureau of Motor Insurers of Armenia.

As ArmInfo writes, according to the Bureau of Motor Insurers, the number of vehicles with MTPL policy in 1Q2023 increased more noticeably than in the same period of 2019, which allowed GWP to outstrip the growth rate four years ago (10.4% in 1Q2019). The annual growth in the number of vehicles with MTPL policy slowed down to 5.7% but was higher than 3.6% in 2019. At the same time, in quantitative terms, the number of vehicles with MTPL policy exceeded not only last year, but also the level of 2019 - 608.810 thousand units vs 509.001 thousand units in 2019.

GWP increased by 12.8% y-o-y to AMD 6.3 billion (USD 16.3 million), vs AMD 4.7 billion in 2019. The average MTPL insurance premium decreased by 4.2%.

Activity of e-MTPL sales decreased with a slowdown in annual growth from 65.1% to 4.1%. As a result, the share of electronic policies in the total number of MTPL contracts dropped from 27% to 24% over the year. Experts attribute the slowdown in dynamics to the expected liberalization of MTPL tariffs from April 1, 2023, which, among other things, provides for more noticeable discounts for electronic policies.

The number of claims in 1Q2023 decreased by 0.2%, total volume of payments amounted to AMD 4.1 billion (USD 10.7 million), which is 6.7% more y-o-y.

Among the insurers, Nairi Insurance became the leader in terms of the share of vehicles with valid MTPL policy (27.87%) as well as its GWP share in the market (28%), the source informed.