ARMENIA: in 1H travel insurance grew by 70% y-o-y

8 September 2021 — Marina MAGNAVAL
In the first half of 2021, GWP in the travel insurance segment in Armenia increased by 70% (vs a decline of 46.4% a year earlier), reaching AMD 235.9 million (EUR 0.4 million*), ArmInfo reports.

Experts attribute this growth to a certain activation of outbound tourism, which allowed the segment to approach the volume of two years ago, as well as to recover its share (1%) in the total market portfolio, according to the Financial Rating of Armenian insurance companies prepared by ArmInfo.

Analysts of the national rating agency AmRating believe that in the current pandemic situation, lockdown resumption is still possible if the applied restrictive measures become ineffective and the travel industry may again be negatively impacted. "A change for the better is only possible with full economic recovery, which is expected at best in 2023, but judging by the current low growth rates, slow vaccination and rapid mutation of the virus, it will most likely be possible to return the previous rates of economic growth no earlier than 2025", analysts said.

Paid claims in travel insurance accelerated their decline to 79.3%, amounting to AMD 6.1 million in the first half of the year. As a result, the share of travel insurance in total market paid claims decreased y-o-y from 0.3% to 0.04%.

In Armenia, the tourist flow is still far from the pre-covid level. In the first half of 2021, the number of tourists visiting Armenia decreased by 22.2% y-o-y. The flow of domestic tourism also decreased by 28.4%, and the number of those who left Armenia for the purpose of tourism (outbound flow) decreased even more - by 42.1%.

*at the following exchange rate:

1 EUR = 587.62 AMD (as of 01.07.2021)

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