ArmInfo. The loss ratio of motor third-party liability insurance (MTPL insurance) was 62% in the first quarter of 2023 against 69% in the first quarter of 2022, and 74% in the first quarter of 2019. The number of MTPL insurance contracts showed an increase from 15.9% to 17.8%, with a 12.8% increase in insurance premiums ($16.3mln) against 17.5% and a 6.7% increase in insurance indemnities (up to $10.7mln) against a 13.5% decrease.
According to the Armenian Motor Insurers Bureau, the number of vehicles with MTPL insurance policies was higher in the first quarter of 2023 against that in the corresponding pre-COVID period, which allowed insurance premiums to exceed the upward trends four years ago (10.4% in the first quarter of 2019). Specifically, the number of vehicles with MTPL insurance policies showed a lower year-on-year increase of 5.7% (against 10.4%), being higher than 3.6% in 2019. However, the number of vehicles with MTPL insurance policies exceeded both last year's and the pre-COVID number - 608,810 against 575,781 in 2022 and 509,001 in 2019 respectively.
Due to higher rates, the year-on-year increase in the number of MTPL insurance contracts neared the pre- COVID level. Specifically, the period under review saw a year-on-year increase from 15.9% to 17.8% against 18.2% in 2019. In the first quarter of 2023, the number of MTPL insurance contracts reached 293,910 against 230,792 in 2019. The insurance premiums under the contracts totaled AMD 6.3bln ($16.3mln), a 12.8% year-on-year increase, against AMD 4.7bln in the pre-COVID period (a 10.4% increase in 2019). In the first quarter, the insurance premium under one MTPL insurance contract averaged AMD 21,559 - a 4.2% year-on-year decrease (against 1.4% increase the previous year), which was the case in the pre-COVID period as well - a 6.6% decrease.
The first quarter of 2023 saw a year-on-year increase from 13.2% to 16.1% in the number of effective MTPL insurance contracts, reaching the pre-COVID rates, with 301,411 contracts signed against 251,510 in 2019. Insurance premiums under the contracts exceeded 6.9bln ($17.9mln) with an 11.3% year-on-year increase against 12.5% and 6.5% in the pre-COVID period. A total of 24,468 MTPL insurance contracts were canceled (a 15.9% decrease) against a 22.3% increase last year, with a higher-rate decrease in 2019. The reimbursed and reimbursable insurance premiums showed an 8.2% decrease against a 21.5% increase, with their amount exceeding AMD 305.4mln ($786,200) in the first quarter of 2023, with a 17% decrease in 2019.
In the first quarter of 2023, the number of sold e-MTPL insurance policies showed a decrease, down to 71,051, with a 4.1% year-on-year increase against 65.1%. Much slower rates of increase were recorded as compared with the first quarter of 2019 (4-fold and up), with a 9-fold increase in the actual number of sold insurance policies (from 7,698). The share of e-policies in the total of MTPL insurance contracts showed a year-on-year decrease from 27% to 24%, significantly exceeding the 3.3% level in 2019. This "reduced dynamics" is mostly probably the result of the liberalization of MTPL insurance tariffs from April 1, 2023, which provided for higher discounts on MTPL insurance policies against the previous 5%.
In the first quarter of 2023, 18,659 applications for insurance indemnities were submitted, a 0.2% decrease as compared with the corresponding period last year (against a 9% decrease in 2022 and 19.4% increase in 2019). The paid indemnities totaled AMD 4.1bln ($10.7), with a 6.7% year-on-year increase (against a 13.5% decrease in 2022 and a 10.1% increase in 2019). A total of 5,811applications involved cases of European accident statements, with a year-on-year decrease from 23.7% to 22.2% (against a 10.5% increase in 2019). The paid indemnities totaled AMD 468.8mln or $1.2mln with a year-on-year decrease from 26.8% to 18.6% (against a 3.6% increase in 2019), with one indemnity averaging AMD 80,670, with a 4.7% year-on-year increase (against a 4% decrease in 2022 and a 6.3% decrease in 2019). In the first quarter of 2023, an additional 33,029 vehicles with effective MTPL insurance contracts was recorded. Specifically, three insurance companies recorded 47,500 more contracts, whereas three other insurance companies recorded 14,400 fewer contracts. The LIGA Insurance company recorded the largest decrease, 6,700 fewer contracts, with the Nairi Insurance company recording the highest increase in the number of contracts - 33,200 more contracts. Thus, the Nairi Insurance company is the leader in the number of vehicles with effective MTPL insurance policies - 169,692 (a 24.3% year-on-year increase), with LIGA Insurance being the second leader, 165,032 (a year-on-year decrease of 4%), followed by INGO Armenia, 83,076 (a year-on-year decrease of 4.4% or 3,800), Sil Insurance, 71,370 (a 3.5% year-on-year increase or 2,400), REGO insurance company, 67,567 (a 5.6% year-on-year increase or 3,980), Armenia Insurance, 52,073 (a 29.4% year-on-year increase or 11,800).
As a result, Nairi Insurance company's share in terms of vehicles with effective effective MTPL insurance policies (27.87%), with its share in insurance premiums being 28%, followed by LIGA Insurance (once the leader) - 27.11% and 26.5% respectively. However, LIGA Insurance remains the leader in terms of indemnities and MTPL insurance coverage - 29.03% and 46.7%, respectively, followed by Nairi Insurance - 25.34% and 18.6% respectively, INGO Armenia - 14.6% in insurance indemnities, 12.1% in MTPL insurance coverage and 13,65% in the number of vehicles with MTPL insurance policies. SIL Insurance is a little behind, with the two other insurance companies reporting much lower figures.
Six Armenian insurance companies are operating 18 of 20 classes of insurance, expect for the Railway Third Party Liability Insurance and legal and extra-judicial expenses insurance. INGO Armenia (the only company providing water transport insurance) and Armenia Insurance (the only company providing rail transport insurance) are the leaders in the number of classes of insurance - 16.
Last December, RECO and Rosgosstrakh companies implemented rebranding projects: the RECO company was renamed REGO, with new shareholders, and the Rosgosstrakh company was renamed LIGA Insurance. As regards INGO Armenia, which is indirectly owned by the Russia-based Ingosstrakh, the company continues working in Armenia's market, adapted to the sanctions imposed on Ingosstrakh, under the regulator's supervision. (the AMD/USD exchange rate was 388.48/$1 on March 31, 2023).
