ArmInfo. In 2019, the Armenian insurers reimbursed over 25 billion drams or $ 52.1 million for various classes (the figures are given from the reports of insurance companies portfolios according to the standards of the Central Bank of the Republic of Armenia).
Over the reporting year, reimbursements of insurers increased by 9.7%, against 28.4% in 2018. At the same time, a y-o-y growth of 19.8% was recorded for insurance premiums of the Armenian insurance companies - up to 49.1 billion drams or $ 102.4 million, against a 17.4% growth in 2018. According to the Financial Rating of the Armenian Insurance Companies prepared by ArmInfo IC, five companies provided y-o-y growth in payments, with INGO Armenia IC having the largest growth of 20%, and only Nairi Insurance IC having the decline (2.9%).
In terms of insurance classes, the largest y-o-y growth in payments was recorded by freight insurance - 2.5 fold (against a decline of 38.8% in 2018). After this class, in terms of y-o-y growth rates of indemnities, follow: medical insurance - 17.1% (against growth by 73% in 2018) and compulsory motor third liability insurance (CMTPL)- 10.1% (against growth by 15.9% a year earlier).
The deterioration in the y-o-y dynamics of payments from growth to recession was recorded for: accident insurance - 31.1% (against a 2-fold increase in 2018), insurance for people traveling abroad - 9.3% (against 16.5% growth in 2018), property insurance - 37.3% (against growth by 15.5% in 2018), MOD insurance - 28.1% (against growth by 17.5% in 2018), general liability insurance - 48% (against 36.6% growth in 2018).
The y-o-y compensation for two classes remained in recession: on liability insurance for using land transport - with an acceleration of rates from 33% to 74.9%, and for insurance of financial damage - with a slight slowdown in rates from 12.7% to 10.8% . In general, no payments were made during the reporting period on credit risk insurance, on insurance of air transport and the liability of its use, water transport and the liability of its use, and the guarantees provided.
Rosgosstrakh-Armenia IC holds the lead in insurance payments - 7.3 billion drams. The second place is occupied by INGO Armenia IC with a volume of indemnities of 6.3 billion drams. TOP-3 closes IC Nairi Insurance with a payout of 4.4 billion drams. Close to them is the IC Sil Insurance with an indicator of 3.4 billion drams. The fifth position is held by RESO IC with an indicator of 2 billion drams. And the Armenia Insurance IC closes the list of insurance companies with a volume of payments of 1.6 billion drams.
The largest share of payments in the structure of indemnities traditionally fell to compulsory motor liability insurance - 59.6% or 14.9 billion drams, against 59.4% a year earlier. Health insurance accounted for 32.6% of the total amount of insurance payments or AMD 8.2 billion, against 30.6% a year earlier. In the MOD insurance, the amount of insurance payments amounted to 976 million drams or 3.9% of the total insurance indemnities, against 5.9% a year earlier. Freight insurance accounted for 1% or 249.8 million drams (against 0.4% a year earlier), and financial insurance - 0.8% or 187.8 million drams (against 0.9% a year earlier). In other classes, payments range from 5.7-119.9 mln drams, with a maximum for insurance of air transport (0.5% of total payments, against 0% a year earlier) and a minimum for insurance of liability for using vehicles (0.02%, against 0,1% a year earlier).
In 2019, Armenian insurance companies recorded a total of 354.1 thousand insured events (with annual growth of 17.9%), of which most fell to health insurance - 273.4 thousand cases. Under CMTPL, insurers recorded over 77 thousand insurance claims. The insurance of land transport (MOD) in terms of the number of cases takes the third place - 1.7 thousand cases, and in the fourth place - insurance for those traveling abroad - 1.1 thousand cases. In the Armenian insurance market, 2 compulsory types of insurance are practiced - compulsory motor liability insurance and medical insurance of state employees. To recall, 6 companies operate in the insurance market of Armenia, working on 17 classes out of the existing 20 classes, with the exception of railway transport insurance, liability from the use of railway transport, insurance of legal and extrajudicial expenses. Moreover, since 2019, in the financial reports on the portfolio of all 6 insurance companies, at the request of the Central Bank of the Republic of Armenia, a line of insurance of seismic risks (from earthquakes) was added, the data for which, although separately indicated, is not included in the results, since they are already included in the corresponding insurance classes. The largest number of classes are licensed by INGO Armenia IC - 16 and Rosgosstrakh Armenia IC - 15. (Estimated exchange rate of dram to dollar as of Dec 31, 2019 was 479.70 dr./$ 1).
