ARMENIA: in January-February, activity of e-MTPL sales sharply slowed down from 73% to 5.9%

23 March 2023 —
Right before liberalization of MTPL tariffs in Armenia, growth of sales of electronic policies and paper counterparts is slowing down, GWP growth is weakening, but at the same time, a decrease in the number of terminated contracts is observed.

This is accompanied by a slowdown in the growth of the number of vehicles with MTPL policy, ArmInfo reports referring to the data of the Bureau of Motor Insurers of Armenia.

In January-February 2023, the number of vehicles with MTPL policy increased by 5.2% y-o-y, which is lower than the 9.8% recorded a year earlier. At the same time, in the reporting period, annual growth in the number of concluded MTPL contracts also slowed down - from 19.4% to 14.2%. However, in quantitative terms, in January-February 2023, more MTPL contracts were concluded than in the same period of 2019, and GWP, despite a slowdown in growth from 18% to 12.2%, reached AMD 4.1 billion (USD 10.5 million), exceeding the pre-Covid indicator of AMD 3.1 billion.

At the same time, after a two-year accelerated growth, the number of terminated MTPL contracts began to decrease - by 21%.

Against this background, the activity of e-MTPL sales fell, as evidenced by a sharp slowdown in annual growth from 73% to 5.9%. As a result, in January-February 2023, 46,998 thousand MTPL electronic policies were concluded, the share of which in the total number of MTPL contracts decreased from 27% to 25% over the year.

Applications for insurance compensation submitted in January-February 2023 were 4.1% less than a year ago, and payments on them amounted to AMD 2.8 billion (USD 7.1 million), with an annual growth of 7.2%.

By March 2023, the MTPL loss ratio decreased to 61% from 69% a year earlier, which is significantly lower than the pre-Covid level of 75% in 2019.

Nairi Insurance became the leader in terms of the number of vehicles with MTPL policy (166.119 thousand units, +23.1%), shifting the former leader - Liga Insurance (formerly RGS-Armenia) (165.439 thousand units), INGO Armenia ranks third (82.991 thousand units). The last place out of six operating insurers belongs to Armenia Insurance (51.109 thousand units).

Nairi Insurance also leads in terms of the share of MTPL GWP in the total market volume - 27.5%, in terms of the share of vehicles with MTPL policy (27.45%), while maintaining the second position in terms of the share of paid claims - 26.18%.