Monday, February 10 2020 18:59

ArmInfo. At the end of 2019, the retail component dominates in the portfolio of premiums of Armenian insurers - 52.8% (26 billion drams), while the corporate  share accounts for 47.2% (23.2 billion drams), versus 51.8% and  48.2%, respectively a year earlier.

According to the Financial Rating  of Armenian Insurance Companies prepared by ArmInfo IC, the retail  insurance market capacity has sharply accelerated annual growth from  8.4% to 22.1%, while corporate insurance growth has slowed noticeably  - from 28.8% to 17.3% .

At the end of 2019, corporate insurance prevailed in the premium  portfolios of only one insurer - INGO Armenia - 60.4%. And the  remaining five insurers in the premium portfolios dominate the retail  component: Armenia Insurance - 65.7%, RESO - 64.7%, Rosgosstrakh  Armenia - 57.8%, Nairi Insurance - 55.5% and Sil Insurance - 51.8% .  Moreover, the largest gap between corporate and retail insurance was  recorded in Armenia Insurance IC (34.3% and 65.7% respectively) and  RESO (35.3% and 64.7% respectively).

In the structure of insurance indemnities, the share of payments to  retail customers accounted for 67.7% or 16.9 billion drams, corporate  - 32.3% or 8.1 billion drams, which slightly differs from the figures  for 2018 - 68.1% and 31.9%, respectively. At the same time,  reimbursements to legal entities sharply slowed down the annual  growth from 44% to 11%, while the upward trend in payments to  individuals was no less significant - from 22% to 9%. The largest  disproportion in indemnities between retail and corporate insurance  was recorded in the reporting year with Rosgosstrakh Armenia  Insurance Company -    91.2% and 8.8%, and the lowest at INGO Armenia  IC - 50.8% and 49.2%.  - In the structure of premiums transferred for  reinsurance, the share of corporate insurance amounted to 92.1% or 7  billion drams (with a sharp acceleration of annual growth from 9% to  45%), retail - 7.9% or 593.5 million drams (with a slowdown in annual  growth from 55% to 22%). A year earlier, at the end of 2018, the  share of corporate insurance in premiums transferred to reinsurance  was 90.8%, and retail - 9.2%. The largest disproportion between  corporate and retail insurance in premiums listed for reinsurance was  recorded in Armenia Insurance IC - 96.6% and 3.4%.

For the fourth quarter of 2019, Armenian insurers concluded 515081  contracts, exceeding the number of contracts a year ago by 30.4%  (against 14.8% growth a year earlier). Thus, the number of insurance  contracts in force on January 1, 2020 amounted to 975859 with an  annual growth of 18% (against the 19.2% growth a year earlier). Among  the classes, OSAGO holds the leading position in the number of  concluded contracts - in the fourth quarter, 356.1 thousand, the  number of existing contracts under which exceeded 570 thousand as of  January 1, of the voluntary types of insurance, the most popular  accident insurance, in which in the fourth quarter 92.3 thousand  contracts were concluded, and the number of active ones by January 1  reached 269.8 thousand. According to the number of contracts in the  OSAGO segment, IC Rosgosstrakh Armenia is the leader (173.5 thousand  operating as of January 1, of which 106.4 thousand were concluded IV  quarter), and the same company dominates in health insurance (about 2  thousand were concluded in the IV quarter). INGO Armenia (102.5  thousand operating as of January 1), which holds the lead and  property insurance (30.2 thousand operating as of January 1), is the  leader in accident insurance. According to CASCO, Nairi Insurance  holds the lead (over 5.7 thousand operating as of January 1). In  insurance of those traveling abroad, the leader in terms of the  number of INGO Armenia contracts: 6.7 thousand effective as of  January 1, 6.6 thousand concluded in the fourth quarter.  In terms of  the number of prisoners in the fourth quarter, IC Rosgosstrakh  Armenia moved up to the first position - 139.6 thousand, displacing  126.5 thousand to the second IC INGO Armenia, and RESO IC - 74.1  thousand to the third. the fourth - Nairi Insurance IC - 72.3  thousand, the fifth - Armenia Insurance - 53.1 thousand, the sixth -  Sil Insurance IC - 48 thousand. For all six companies, the MTPL  dominates in the concluded agreements with a maximum of Seal  Insurance and Armenia Insurance (87.2-87.3%) and INGO Armenia as a  minimum (42.5%).

Recall that in the insurance market of Armenia there are 6 companies  operating from the existing 20 classes of 16 each, with the exception  of railway transport / liability insurance and litigation and  extrajudicial expenses insurance. 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 on  which are not taken into account in the results, since they are  already included in the corresponding insurance classes. In the  largest number of classes, IC INGO Armenia is licensed - 16 (the only  one operating in the class of water transport insurance) and IC  Rosgosstrakh Armenia - 15, followed by IC Nairi Insurance and IC  Insurance Armenia - for 12 classes, IC "RESO" and IC "Force  Insurance" - for 11 classes (The Forex exchange rate as of 31.12.19  formed  479,70 for 1 USD).