On the insurance market of Armenia, MTPL loss ratio has been at 64% for a year, which is much lower than 79% in January-July 2021 and 72% in the same period of 2019, ArmInfo wrote.

The insurance sector ended the first half of 2023 with an increase of 22%, reaching AMD 41.28 billion (EUR 98.55 million). At the same time, the growth of paid claims led to a noticeable decrease in the growth rate of profits of insurance companies in Armenia, according to the data of the Financial Rating of insurance companies provided by ArmInfo.

In 1H2023, the Armenian insurance sector increased tax payments to the state treasury by 10%, providing total of AMD 1.010 billion (~EUR 2.40 million), of which AMD 855.1 million were direct taxes, with an annual growth of 9.2%, ArmInfo reports.

According to the 1H results, the MTPL loss ratio in Armenia stabilized at 64%, having slightly decreased from 65% in the same period of 2022, while much lower than 81% in 2021, and 73% in 2019, ArmInfo reports.

At its plenary session on June 13, the National Assembly of the Republic of Armenia started discussions on the draft agreement on the establishment of the Eurasian Reinsurance Company (ERC) presented by the Armenian government, ArmInfo reports.

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.

The insurance sector of Armenia in the first quarter of 2023 grew by 17.24% to AMD 23.81 billion (EUR 48.94 million). At the same time, paid claims' growth slightly outpaced premiums and amounted to 18.70%, as shown by the data on the activities of insurance companies provided by ArmInfo.

According to the 1Q results, the list of 1,000 largest taxpayers in Armenia included three insurance companies out of six operating in the country, as evidenced by the data of the State Revenue Committee, ArmInfo wrote.

In the first quarter of 2023, MTPL loss ratio in Armenia decreased to 62% (vs 69% a year earlier and 74% in 1Q2019). At the same time, there was an increase in the number of concluded contracts by 17.8%, as evidenced by the data of the Bureau of Motor Insurers of Armenia.

The decision of the Bureau of Motor Insurers of Armenia to change pricing mechanisms in the MTPL market in 2022 ensured a decrease in the loss ratio from 79% to 66%. This decision established a single policy of AMD 41 thousand for vehicles without MTPL agreement, regardless of the vehicle brand, engine power and other factors affecting the policy price, ArmInfo writes.

From April 1, 2023, MTPL market in Armenia will be completely liberalized, after that government agencies and citizens will have an opportunity to choose insurance companies, considering price/quality.

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.

The insurance market of Armenia ended 2022 at a historical maximum of premiums and paid claims. The increase in paid claims was imperceptible, while the increase in premiums was double-digit, which allowed the insurance sector to receive a net profit of AMD 4 billion (USD 10 million), with a 5.5-fold annual growth, ArmInfo reports.

The insurance sector of Armenia ended 2022 with an increase of almost 24% (in AMD). Total volume reached AMD 61.08 billion (EUR 145.42 million). It is worth noting that paid claims increased very slightly in local currency, by only 3%, to AMD 29.42 billion, according to the data, provided by ArmInfo.

Of the six insurance companies operating in the country, only three remained in the list of large taxpayers of Armenia for 2022 - NAIRI Insurance, INGO Armenia and ROSGOSSTRAKH Armenia, ArmInfo reports referring to the data of the State Revenue Committee of the Republic of Armenia.

Introduction of the mandatory health insurance system will lead to a change in the sources of financing of the healthcare system, while it will not affect efficiency and quality of the system, ArmInfo writes with reference to Tigran Jrbashyan, Director of the Management Consulting Service of Ameria Company.

In 2022, MTPL loss ratio in Armenia decreased from 79% to 66%, falling below 74% in 2019, driven by a 16.1% annual increase in the number of contracts concluded and a 15.6% increase in GWP to USD 67.3 million , while reducing paid claims by 4.6% to USD 39.8 million, ArmInfo reports citing the Bureau of Motor Insurers of Armenia.

The phased introduction of Universal Health Insurance in Armenia will begin in 2024. The Ministry of Health of the Republic of Armenia has developed and presented a draft Concept on the implementation of UHI, ArmInfo writes.

Full launch of health insurance in Armenia will be completed by 2027, ArmInfo wrote referring to the statement of the Minister of Health Anahit Avanesyan.

For 10 months of 2022, the MTPL loss ratio in Armenia decreased to 64% from 78% in the same period last year, being even lower than the pre-Covid 72% in January-October 2019, ArmInfo reports.