The share of electronic MTPL policies in total number of MTPL insurance contracts in Armenia, as of June 2020, increased to 13% from 4% a year ago, the latest data from the Bureau of Motor Insurers of Armenia shows, ArmInfo reports.
Armenian insurance market ended 1Q2020 with a decline in GWP by 4.19% y-o-y, the premiums volume amounting to AMD 15.8 billion (~EUR 28.59 million*). The market paid claims increased by 7%, to AMD 6.38 billion (~EUR 11.53 million*), according to the data of insurance companies, provided by ArmInfo.
In 1Q2020 the number of e-MTPL policies in Armenia increased 3.2 times y-o-y, and their share in total number of MTPL contracts jumped from 3% to 11%, ArmInfo reports with reference to the data of the Armenian Bureau of motor insurers.
Tax payments of Armenian insurers to the state budget for 1Q2020 decreased by 15.6% y-o-y, to AMD 534.7 million (~EUR 0.97 million).
During January-February 2020, the number of e-MTPL policies in Armenia amounted to 16,448 units, while the share of electronic policies in total number of MTPL agreements reached 11% (vs. 3% a year ago), ArmInfo reports, based on the Armenian Bureau of motor insurers data.
In view of the current situation related of coronavirus, INGO Armenia switched to the emergency mode of remote services, taking into account the decision of authorities to declare state of emergency and social responsibility to its clients, ArmInfo reported with reference to the insurer's press service.
As the data of the Bureau of motor insurers of Armenia show, the number of e-MTPL contracts in 2019 increased 3.6 times and reached 5% of the total MTPL contracts, ArmInfo reports.
In 2019, the Armenian insurance market grew by 19.79% in local currency, its GWP amounting to AMD 49.13 billion (~EUR 91.45 million), according to the data of insurance companies, provided by ArmInfo.
According to the data of the Financial Rating of Armenian insurance companies, prepared by ArmInfo, total net profit of local insurers in 2019 increased 7.3 times (vs. a decline by 67.6% in 2018), and reached AMD 1.4 billion (USD 3 million).
Starting January 1, 2020, income tax amount was reduced and will reach soon 20%. Considering new income tax rates and increased minimum wage amount, citizens of the country will be able to receive extra AMD 1.5 billion (~EUR 2.84 million) monthly, ArmInfo reports.
According to the Minister of Health of Armenia, Arsen TOROSYAN, the healthcare sector needs additional resources in the amount of AMD 150 billion (~EUR 283 million); the new health tax of 6% on the wages of the working population might be the source of that, ArmInfo reports.
At the end of 3Q2019, Armenian insurance market generated GWP worth of AMD 36.5 billion (EUR 70.3 million), 19.7% more y-o-y. In European currency the market growth looked much more impressive (+28.8%) thanks to a more favorable exchange rate of dram against euro.
For the first 9 months of 2019, taxes paid by Armenian insurers amounted to AMD 1,211 billion (~EUR 2.33 million), 25% less y-o-y in local currency, ArmInfo reports.
From January to September 2019, the insurance portfolio of the Export Insurance Agency of Armenia increased by 1.76 times, to AMD 6.28 billion (~EUR 12 million), according to Tigran KHACHATRYAN, the Armenian Minister of economy, as ArmInfo reports.
As Armenian Prime minister Nikol PASHINYAN announced, agricultural insurance is about to start in the country, and its mechanism will be operated in a test mode at the first stage to determine all possible weak points, ArmInfo reports.
From January to June 2019, taxes paid by local insurers in Armenia amounted to AMD 928.5 million (~EUR 1.7 million), which is 18.2% less y-o-y, ArmInfo reports.
In the first half of 2019 Armenian insurers have recorded a consolidated net profit by 71% higher as compared with the similar period of 2018, amounting to AMD 757.8 million (~USD 1.6 million), ArmInfo reports.
In the first quarter of 2019, Armenian insurers paid 11.8% more y-o-y in taxes. Total taxes of the insurance industry amounted to AMD 633.9 million, of which AMD 542.3 million (86%) fell into direct taxes, ArmInfo reported.
Total GWP of Armenian insurers in the 1st quarter amounted to AMD 16.5 billion (EUR 30.28 million), 17.4% more y-o-y in local currency (vs 47.6% a year ago according to the insurer's portfolio data), market results from ArmInfo show.
For the first three months of this year, the average MTPL loss ratio increased from 62.9% to 64.5% (without deduction of reserves) and from 71.1% to 73.7% (with deduction of reserves), according to the Bureau of Motor Insurers.