ARMENIA: by September MTPL loss ratio increased to 65%

4 October 2023 — Marina MAGNAVAL
MTPL loss ratio began to slowly grow in the Armenian insurance market - by September 1, 2023, on an annual basis, it increased from 63% to 65%, ArmInfo reports.

It is noted that this trend is observed against the background of the transition from April 2023 to liberalization of MTPL tariffs, due to that in January-August growth of the number of concluded contracts slowed down - from 18.3% to 13.8%, and insurance premiums - from 17.7% to 3.7% , while paid claims came out of recession to grow by 11.9%, as evidenced by data from the Bureau of Motor Insurers of Armenia.

According to the Bureau, the number of vehicles with MTPL policies increased in January-August by 5.6% y-o-y (vs 8.1% a year earlier). The growth of the number of concluded MTPL contracts during the period under review slowed from 18.3% to 13.8%. GWP collected increased by only 3.7% (vs 17.7% in 2022), reaching AMD 17 billion (USD 44 million).

The sales activity of e-MTPL policies has noticeably decreased - the growth for January-August 2023 slowed from 38.6% to 11.2%. However, in quantitative terms, a jump of 6.4 times was recorded; as a result, the share of such policies in the total number of MTPL contracts decreased over the year from 25% to 24%. A significant slowdown in dynamics is likely due to expectations from the liberalization of MTPL tariffs, which also provides for more noticeable discounts.

The total number of applications for insurance compensation submitted in January-August 2023 is 2.5% more y-o-y. Paid claims amount exceeded AMD 11.2 billion/USD 29.1 million (+11.9%).