ARMENIA: MTPL loss ratio reaches 64% in 1H

1 August 2023 — Marina MAGNAVAL

According to the 1H results, the MTPL loss ratio in Armenia stabilized at 64%, having slightly decreased from 65% in the same period of 2022, while much lower than 81% in 2021, and 73% in 2019, ArmInfo reports.

Market experts attribute this loss ratio decrease to the transition from April 2023 to MTPL price liberalization, which slowed down the growth in the number of concluded contracts - from 19.7% to 16.3%, and GWP growth - from 21.4% to 6.5%, while paid claims returned to growth of 9.8%, as the data of the Motor Insurers Bureau of Armenia show.

According to the Bureau, the number of vehicles with MTPL-policy in 1H2023 increased by 4.8% y-o-y (vs 12.9% a year earlier). However, in quantitative terms, as of July 2023, their number was 623.994 thousand vs 595.373 thousand in 2022.

Deceleration of growth was observed in the number of MTPL contracts concluded. During the reporting period, annual growth slowed down from 19.7% to 16.3%, but in quantitative terms, more MTPL contracts were concluded in 1H2023 than a year ago: 616,817 thousand units vs 530.284 thousand units in 2022. GWP collected increased by 6.5% (vs 21.4% in 2022), amounting to AMD 12.6 billion (USD 32.5 million).

The activity of e-MTPL sales has noticeably decreased - growth in 1H2023 decreased from 53.5% to 10.4%. The share of such policies in the total number of MTPL contracts dropped over the year from 26% to 24%.

The number of applications for insurance compensation in the reporting period increased by 1.4%, total amount of paid claims exceeded AMD 8.3 billion (USD 21.5 million), with y-o-y growth of 9.8% (vs a decline of 8.7% in 2022).