74.4% ratio of MTPL contracts in Armenia`s insurance market by Aug  2025

ArmInfo. In the insurance market of Armenia, the loss ratio for compulsory motor third-party liability insurance has been declining since 2025, amounting to 74.4% in  January-July (versus 79.3% a year earlier). This is evidenced by the  data of the Bureau of Motor Insurers of Armenia.

The decline in the loss ratio in the reporting period was observed  against the background of an improvement in the annual dynamics of  the number of active contracts from a 1.6% decline to 7.9% growth, an  acceleration in the growth of insurance premiums from 5.6% to 17.4%,  and a weakening in the growth of compensation from 23.6% to 7.4%.

According to the Bureau, the number of vehicles with compulsory motor  third-party liability insurance policies increased moderately  year-on-year - by 4.7%, while a year ago the growth was 5.8%. In  quantitative terms, by August 2025, there were 699,592 thousand  vehicles with MTPL contracts in the country, but the number of active  contracts was 790,882 thousand (minus terminated ones - 725,111  thousand).

In the total number of MTPL contracts, the share of E-policies  increased over the year from 32% to 36%, amounting to 280,338  thousand by August of this year, with a slightly noticeable slowdown  in annual growth from 27.7% to 22.4%.

According to the results of January-July 2025, the volume of  insurance premiums collected under current contracts reached 19.1  billion drams ($49.8 million), and the volume of insurance  compensations exceeded 12.8 billion drams ($33.4 million). Moreover,  the volume of compensation paid in cases of simplified registration  of road accidents (Europrotocol) accelerated in annual growth from  28.1% to 62.6%, amounting to 2.2 billion drams ($5.7 million), and  the average size of one payment accelerated in annual growth from  12.4% to 31.6%, reaching 123,104 thousand drams ($321, against $241 a  year ago). At the same time, for general insurance compensations, the  average size of one payment slowed in annual growth from 11.9% to 5%,  amounting to 268,792 thousand drams ($700, against $660 a year ago).

According to the Bureau's data for January-July 2025, the largest  number of vehicles with an OSAGO policy is now covered by INGO  Insurance Company - 124,768 thousand units. (almost 18% on the  market), which by the way has seen its loss ratio for MTPL increase  from 72% to 75% over the year. Nairi Insurance has a slightly smaller  number of vehicles with MTPL policies - 121,371 thousand units, whose  loss ratio for MTPL has decreased over the year from 67% to 65% (and  this, like a year ago, is the lowest level on the market). The  highest loss ratio for MTPL in the reporting period is recorded by  Armenia Insurance (83%, against 74% a year ago), and this insurance  company occupies the 5th position in terms of the number of vehicles  with MTPL policies (112,733 thousand units). The largest volume of  insurance premiums under current MTPL contracts are provided by Nairi  Insurance and INGO - 3.8-3.7 billion drams (20-19% of the total  volume), but in terms of compensation in this class, Armenia  Insurance and Nairi Insurance are leaders with almost the same  volumes - 2.64-2.56 billion drams (21-20% of the total volume).  Armenia Insurance and LIGA Insurance are distinguished by the largest  payments in cases of simplified registration of accidents  (Europrotocol) - 21-20% of the total volume on the market. The  leading number of E-policies is recorded by INGO Insurance - 123,402  thousand (44% of the total number of such contracts on the market,  and in 2nd place is Armenia Insurance - 66,339 thousand (24%). In  terms of the total number of active contracts, the first two  positions are occupied by INGO and REGO Insurance - 160.4 thousand  and 158.8 thousand, respectively, in both cases exceeding 20% of the  total number on the market.

It should be noted that since April 2023, the transition to  liberalization of tariffs for compulsory motor third-party liability  insurance has started in the insurance market of Armenia, and after a  quarter, the loss ratio for this class began to grow. This trend  continued until 2025.

Recall that since the end of July 2023, 7 insurance companies have  already been operating in Armenia, since EFES Insurance Company has  returned to the market, which is currently preparing to enter the  compulsory motor third-party liability insurance segment. liability  (OSAGO). (The calculated exchange rate of the dram against the US  dollar as of 31.07.2025 was 383.82 drams/$1, against 388.10 drams/$1  as of 31.07.2024).