At the same time, health insurance continues to dominate in the total GWP portfolio, occupying 45%, according to the Financial Rating of Insurance Companies of Armenia, prepared by ArmInfo on the basis of the reports of insurance companies based on the standards of the Central Bank of Armenia.
"The relevance and advantageous position of health insurance, supposed to be against the background of the coronavirus pandemic, did not work in reality due to a number of unforeseen factors: undulating course of the virus with mutations into new strains, an unprecedented situation of uncertainty, late appearance of vaccines and too slow vaccination process, political and economic instability in the country, a decrease in real incomes of the population and, therefore, a decrease in aggregate demand, including for medical services. And, of course, a negative impact of the restrictions during the pandemic on travel insurance, the main component of which is health insurance for those traveling abroad. The situation can change for the better only with economic recovery, which is expected at best in 2022, but looking at low rates of vaccination and rapid mutation of the virus into new strains, the recovery to the previous rates of economic growth is more likely no earlier than 2025", analysts of the national rating agency AmRating said.
Paid claims in health insurance went into decline (-6.9%) and amounted to AMD 1.8 billion in the first quarter of 2021, having reduced their share in the portfolio of market paid claims from 31.1% to 26.4% (second place). However, at the same time, according to the FinRating of ArmInfo, this segment holds the third place in terms of the number of contracts, which indicates its high demand.
At the same time, suspension of tourist traffic put travel insurance in a very "deplorable" situation - GWP in this segment decreased by 40.4% in the first quarter of 2021 (vs an increase of 7.1% a year earlier), to AMD 66.7 million, which reduced the segment's market share to 0.4%.
Travel insurance paid claims for January-March 2021 fell by 71.3% y-o-y, to AMD 6.1 million, thus making up only 0.1% in the market's paid claims portfolio. The number of contracts in this segment dropped by 86%.
INGO Armenia and ROSGOSSTRAKH Armenia hold the leading positions in the segments of health and travel insurance, with their total shares in the market GWP of the two segments of 61% and 63%, respectively. They also rank first in terms of the number of effective contracts.
* for the following exchange rate:
1 EUR = 549.08 AMD (01.04.2021)