ArmInfo. Retail insurance accounted for 56% (9.03bln drams) of total premium portfolios for the first half of 2016, with corporate insurance accounting for 44% (7.1bln drams) of total. At the same time, the retail insurance market capacity suffered a 3.9% y-o-y decline (from 6.5%), as corporate insurance growth slackened dramatically to 7.3% from 18%. Before MTPL and compulsory individual medical insurance for government-funded employees were introduced in Armenia, corporate insurance prevailed over the retail one significantly.
Retail insurance prevails of corporate one in the premium portfolios of all the insurers: least of all at INGO Armenia Insurance Company (IC) (55.1%), most of all at RESO IC (78.7% and 21.3%). Retail insurance at Armenia Insurance Company is 70% of total premium portfolio, at Nairi Insurance - 52.5%, Rosgosstrakh Armenia IC - 55.1%, Sil Insurance - 52%.
Indemnities paid to retail insurance customers accounted for 67.6% or 4.6bln drams of total, while the ones paid to corporate customers made up 32.4% or 2.2bln drams of total. Indemnities paid to legal entities grew 38% year over year from 79% decline. The payments to private customers declined 2.3% y-o-y from previous 29% decline. Corporate insuranceaccounted for 92.3% or 1.4bln drams of total reinsurance premiums (a 4.4% annual growth), with retail insurance accounting for 7.7% or 114mln drams of total (down 6.4% y-o-y). (The exchange rate for June 30 2015 was 476.68AMD/1USD).
Armenian insurers made 244,404 contracts for Q2 2016, with a 9.7% y-o-y growth. The number of the insurance contracts effective as of July 1 2016 totaled 639059 with a 7.9% y-o-y growth. The biggest number of insurance contracts is on MTPL - 169.5 thousand for Q2 2016, with the number of effective insurance contracts reaching 420.9 thousand as of July 1 2016. The most demanded voluntary insurance line is accident insurance - 32.4 thousand contracts for Q2 2016 and 113.2 thousand effective contracts as of July 1 2016. The leader in the MTPL segment is Rosgosstrakh Armenia IC - 126.6 thousand effective contracts, of which 53.4 thousand were made in Q2. The leader in the accident insurance segment is RESO - 79.6 thousand, of which 22.7 thousand in Q2.
Armenian insurance companies provide 17 out of 19 insurance lines registered in Armenia. INGO Armenia is the only company to provide 16 insurance lines (the only company that provides water transport insurance). Rosgosstrakh Armenia provides 15 insurance lines (the only company that provides insurance against credit risks). Another 3 companies provide by 11 insurance lines - Sil Insurance, Armenia Insurance and RESO. Nairi Insurance provides 10 insurance lines.