ARMENIA, 1H: loss ratio in MTPL and health insurance increased to 67% and 42.5% respectivelly
Besides the mentioned classes, annual growth of loss ratio was recorded also in travel insurance - from 14.8% to 22.7%, in property insurance against other damage - from 2.2% to 28.4%, insurance of financial risks - from 75.3% to 78.9%. Decline of loss ratio besides of Motor Hull was also reported in cargo insurance - from 16% to 10.3%, property fire and natural disasters insurance - from 11.1% to 8% and GTPL - from 4% to 0.9%. The given figure did not change in accident insurance (6.4%).
According to ArmInfo total GWP for the first half year in the country exceeded AMD 22 billion* (+29.6%), and total paid claims amounted to AMD 10.8 billion (+34.9%). In terms of GWP and paid claims the leading classes are MTPL and health insurance. At that premiums of MTPL increased just slightly - by 0.3%, but paid claims saw a very rapid growth rate - by 20.6%; in health insurance premiums jumped by 2.1 times and paid claims went up by 92.4%.
Changes in the mentioned leading classes are mainly caused by that in health insurance from October 1, 2017 the government launched CHI (compulsory insurance), which should cover public employees, as well as the most underserved people at the first stage of introduction. As for MTPL - in April 2017 direct reimbursement system was established which fundamentally changed the whole picture. Besides, insurers are actively promoting online MTPL policies and automation of many processes, related to this type of insurance.
*EUR 1 = AMD 561.81 (30.06.2018)