ARMENIA: MTPL loss ratio has been at 64% for a year now

11 September 2023 — Marina MAGNAVAL
On the insurance market of Armenia, MTPL loss ratio has been at 64% for a year, which is much lower than 79% in January-July 2021 and 72% in the same period of 2019, ArmInfo wrote.

It is noted that this was observed against the background of the transition from April 2023 to the MTPL liberalization, in January-July a slight slowdown in the rate of double-digit annual growth in the number of concluded contracts - from 19.6% to 15.3%, a noticeable slowdown in GWP growth - from 19.8% to 5.1%, and return of paid claims from recession to growth by 11.6%, as the data from the Bureau of Motor Insurers of Armenia show.

According to the Bureau, in January-July 2023, the number of vehicles with MTPL policies increased by 5.1% y-o-y, which is much more restrained than last year’s 11.5%. A slowdown in growth was also observed in the number of MTPL contracts concluded. Thus, during the reporting period, y-o-y growth slowed from 19.6% to 15.3%. But in quantitative terms, in January-July 2023, local insurers concluded more MTPL contracts than a year earlier. GWP collected on them increased by only 5.1%, exceeding AMD 14.7 billion (USD 38.2 million).

Total number of applications for insurance compensation submitted in January-July 2023 was 2.7% more y-o-y, and paid claims reached AMD 9.7 billion (over USD 25 million), with indicates growth of 11.6%.