ArmInfo.In the insurance market of Armenia, the loss ratio for MTPL for 2024 increased from 71.7% to 81.8%. This is evidenced by the data of the Bureau of Motor Insurers of Armenia.
The growth of the ratio in 2024 was observed against the background of a deterioration in the annual dynamics of the number of active contracts - from 11.7% growth to 0.7% decline, a moderate acceleration in the growth of insurance premiums - from 2.9% to 9.3%, in parallel with which a pronounced acceleration in double-digit growth in compensation was recorded from 15.9% to 20.3%.
According to the Bureau, the number of vehicles with MTPL policies for 2024 increased slightly - by only 1.1%, while a year ago the growth was 10%. In quantitative terms, by 2025, there were 674,524 thousand vehicles with MTPL contracts in the country, but the number of active contracts was 1.317 million (minus terminated ones - 1.194 million). The excess of contracts over the number of cars is explained by the large number of quarterly (short-term) contracts. In the total number of MTPL contracts, the share of E-policies increased over the year from 25% to 31%, amounting to 413,033 thousand, with an acceleration of annual growth from 17.8% to 22.2%.
At the end of 2024, the volume of insurance premiums collected under current contracts exceeded 29.7 billion drams ($75 million), and the volume of insurance indemnities reached 21.9 billion drams ($55.1 million). Moreover, the volume of indemnities paid in cases of simplified registration of road accidents (Europrotocol) increased by 39.1% over the year (with an exit from last year's 4.9% decline) - to 2.7 billion drams ($6.7 million), and the average size of one payment accelerated in annual growth from 8.4% to 19.1%, reaching 101,049 thousand drams ($255, against $210 a year ago). In terms of total insurance compensation, the average size of one payment accelerated in annual growth less noticeably - from 10.8% to 11.3%, amounting to 262,113 thousand drams ($661, compared to $582 a year ago).
According to the Bureau, the largest number of vehicles with an MTPL policy are covered by LIGA Insurance Insurance Company - 138,347 thousand units, which also has the highest loss ratio for MTPL at 90%. A slightly smaller number of vehicles with an MTPL policy are covered by Nairi Insurance and Sil Insurance - 132.8 thousand units and 132.4 thousand units, respectively, for which the loss ratio for MTPL is 73% and 83%. The largest volume of insurance premiums under current MTPL contracts is also provided by Nairi Insurance and LIGA Insurance - 6.7-6 billion drams (23-20% of the total volume), and they are also leaders in the volume of compensation in this class - 4.8-5.8 billion drams (22-27% of the total volume). LIGA Insurance and Nairi Insurance also have the highest payouts for simplified accident registration (Europrotocol) - 28-21% of the total market volume. Armenia Insurance is the leader in the number of E-policies - 135.8 thousand or 33% of the total number of such contracts on the market. In terms of the total number of active contracts, the first two positions are occupied by Nairi Insurance and Armenia Insurance - 267.6-266.1 thousand or 20.3-20.2% of the total number on the market.
Since April 2023, the transition to liberalization of OSAGO tariffs has started in the Armenian insurance market and after a quarter, the loss ratio for this class began to grow.
In Armenia, since the end of July 2023, there are already 7 insurance companies operating, as EFES Insurance Company has returned to the market, which is currently preparing to enter the compulsory motor third party liability insurance (MTPL) segment. (The calculated exchange rate of the dram against the US dollar as of 12/31/2024 was 396.56 drams/$1, against 404.79 drams/$1 as of 12/31/2023).
