ARMENIA: in January-April 2023, sales of e-MTPL policies slow down from 64.6% to 6.1% y-o-y

25 May 2023 —
From January to April 2023, the MTPL loss ratio in Armenia decreased to 62% vs 67% in January-April 2022, which is even lower than the pre-Covid 73% in January-April 2019, ArmInfo reports.

At the same time, annual growth in the number of concluded contracts slowed down from 18.7% to 16.9%, and the growth of premiums slowed down as well from 20.6% to 9.9% - to AMD 8.2 billion/USD 21.3 million. However, paid claims trend changed from decline to growth of 6.9%, reaching AMD 5.5 billion/USD 14.2 million, although the number of claims in January-April 2023 remained practically unchanged y-o-y - only +0.5%, as evidenced by the data of the Bureau of Motor Insurers of Armenia.

According to the Bureau of Motor Insurers, annual growth in the number of vehicles with MTPL policy slowed down from 11.1% to 4.4%, however, in quantitative terms, the number of such vehicles exceeded not only last year, but also 2019 - 613,022 thousand units vs 517.105 thousand units in 2019.

Against this background, sales of e-MTPL policies in January-April 2023 noticeably decreased, slowing down significantly from 64.6% to 6.1%. As a result, the share of such policies in the total number of MTPL contracts dropped over the year from 27% to 24%. A significant slowdown in dynamics can be caused by expectations in connection with the transition from April 1, 2023 to the liberalization of MTPL tariffs, which provides for more noticeable (than the current 5%) discounts on MTPL electronic policies, the experts believe.

*AMD/USD exchange rate as of April 30, 2023: 1 USD = 386.64 AMD