Having 2020 in the rear-view mirror, the overall expectations toward the future significantly improve. The global pandemic, despite starting a year earlier, came in full effect in 2020 and in short-term crippled most of the world: both the individuals and businesses felt the shock. The Armenia’s case is even worse, because of the conflict escalation and war in the Republic of Artsakh.
Insurance, surely, was one of the affected industries. In 2020 while the written premium and paid out claims decreased; the recorded net income was significantly more than that of a year earlier. However, this phenomenon may have had rendered multiplicative effects in the future, that are yet to be examined.
The new year of 2021 still bears the negative consequences of 2020. The gross written premiums slightly increased by 3.24%, going from 15.65 bln AMD to 16.16 bln AMD in 2021. The paid-out claims, as the premiums, increased by 5.90 % (6.70 bln AMD in 2020, 7.10 bln AMD in 2021). However, the investing income presents an opposite picture: decrease of 1.04% or 0.01 bln AMD (0.88 bln AMD in 2020, 0.87 bln AMD in 2021). The final net income has dropped substantially: 122.13% (0.92 bln AMD in 2020, net loss of 0.20 bln AMD in 2021).
Below are presented the tables of the market’s gross written premiums and gross incurred claims.
| Insurance line / Gross Written Premiums | 2021 Q1 | 2020 Q1 | Difference | % change |
|---|---|---|---|---|
| Personal Accidents | 611,092 | 554,814 | 56,278 | 10.14% |
| Health | 7,313,644 | 7,218,833 | 94,811 | 1.31% |
| CASCO | 546,239 | 548,057 | (1,818) | -0.33% |
| Cargo | 240,851 | 222,029 | 18,822 | 8.48% |
| Property | 1,194,112 | 692,564 | 501,548 | 72.42% |
| Airplane | 158,015 | 150,683 | 7,332 | 4.87% |
| Airplane Liability | 5,294 | 52,573 | (47,279) | -89.93% |
| VMTPL | 31,745 | 33,370 | (1,625) | -4.87% |
| General Liability | 274,149 | 190,624 | 83,525 | 43.82% |
| Credit | 21,556 | 5,061 | 16,495 | 325.92% |
| Financial Risks | 297,470 | 214,072 | 83,398 | 38.96% |
| Travel | 57,927 | 109,625 | (51,698) | -47.16% |
| CMTPL | 5,410,322 | 5,662,664 | (252,342) | -4.46% |
| Total | 16,162,416 | 15,654,969 | 507,447 | 3.24% |
| Insurance line / Gross Incurred Claims | 2021 Q1 | 2020 Q1 | Difference | % change |
|---|---|---|---|---|
| Personal Accidents | 74,573 | 12,843 | 61,730 | 480.65% |
| Health | 1,885,802 | 1,959,318 | (73,516) | -3.75% |
| CASCO | 276,418 | 282,401 | (5,983) | -2.12% |
| Cargo | (27,820) | 29,259 | (57,079) | -195.08% |
| Property | 580,049 | 42,548 | 537,501 | 1263.28% |
| Airplane | - | - | - | - |
| Airplane Liability | - | - | - | - |
| VMTPL | 3,723 | 3,156 | 567 | 17.97% |
| General Liability | 12,776 | 51,650 | (38,874) | -75.26% |
| Credit | - | - | - | - |
| Financial Risks | - | 262,120 | (262,120) | -100.00% |
| Travel | 14,243 | 29,785 | (15,542) | -52.18% |
| CMTPL | 4,280,017 | 4,030,937 | 249,080 | 6.18% |
| Total | 7,099,781 | 6,704,017 | 395,764 | 5.90% |
As can be concluded, the individual profitabilities of the firms have also suffered. The average profitability went from 7.66 % to negative 1.80 %. During the 1st quarter of 2021, only INGO ARMENIA, Armenia Insurance and Nairi Insurance had positive net income, while Reso, Sil Insurance and Rosgosstrakh Armenia generated a loss.
