The average insurance payment amounts to about 40,000 drams
As of November 2024, the average size of insurance payments has reached approximately 40,000 drams. This was reported by Vaghinak Yeghiazaryan, Executive Director of the Armenian Bureau of Insurers.
He noted that the average amount of property compensations has increased by 12.5%. The reasons for the rise in insurance payments are linked to companies setting rates based on various factors. Compared to the first 11 months of 2023, this figure has grown by about 5-6%.
The issue of insurance companies operating at a loss was also addressed during the discussion. Yeghiazaryan recalled that in the early stages of the sector, companies offered low rates to attract customers. Insurance companies allocated 81.5% of their collected payments for compensations, with the remaining funds directed to taxes, salaries, and operational expenses.
Yeghiazaryan also touched upon the topic of raising the damage threshold. Previously set at 200,000 drams, it has now been increased to 400,000 drams. According to him, this change has allowed for a 4% increase in the number of agreements signed.
The goal was to slightly reduce traffic congestion caused by accidents. However, achieving a significant reduction is difficult with this measure alone. Last year, we took numerous other steps in this direction and held discussions with the police to improve the handling of accidents. For example, it was suggested to maximize the use of intersection surveillance cameras in such cases. If these cameras are available, individuals can call the police, report the accident, and move the damaged vehicles to the side, after which the officer will arrive and register the incident. Active work is currently underway in this direction.