In Armenia`s insurance market, loss ratio for OSAGO decreased to 79%  by April

ArmInfo.  In the Armenian insurance market, the loss ratio for OSAGO began to decrease in 2025, reaching 79% by the end of the first quarter, down from 86% the previous year. This is evidenced by data from the Bureau of Motor  Insurers of Armenia.  The decline in the loss ratio during this  period was observed alongside an increase in the annual growth rate  of active contracts rising from 0.01% to 5.1. There was also an  improvement in the trend of insurance premiums, shifting from a 0.7%  decline to a 13.7% growth, and a significant slowdown in the growth  of compensation, dropping from 30.7% to 4.3%.

According to the Bureau, the number of vehicles with MTPL insurance  policies increased slightly year-on- year - by 2.1%, compared to 8%  growth the previous year. In quantitative terms, by April 2025, there  were 671,213  vehicles with MTPL insurance policies in the country.  However, the number of active policies was 316,773 (excluding  terminated policies - 288,657).  In the total number of MTPL  policies, the share of E-policies increased from 33% to 36%, over the  year, totaling 110,436 by April of this year, with a slowdown in  annual growth from 34.5% to 15.6%. According to the results of the  first quarter of 2025, the volume of insurance premiums collected  under current contracts exceeded 7.8 billion drams ($20 million), and  the volume of insurance indemnities reached 5.7 billion drams ($14.4  million). Additionally, the volume of indemnities paid in cases of  simplified registration of road accidents (Europrotocol) accelerated  in annual growth from 22.3% to 62.5%, totaling 931.3 million drams  ($2.4 million). The average size of one payment accelerated in annual  growth from 14.5% to 34.3%, reaching 124,106 drams ($317, compared to  $235 the previous year). In terms of total insurance compensation,  the average size of one payment slowed in annual growth from 13.4% to  8.3%, totaling 273,001  drams ($697, compared to $641 a year ago). 

According to the Bureau, the Armenia Insurance Company now covers the   largest number of vehicles with an MTPL policy - 133,934 units. Their  MTPL loss ratio has increased to 88% (from 75% the previous year). A  slightly smaller number of vehicles with an MTPL policy are covered  by the previous leader, LIGA Insurance - 128,453 units, whose MTPL  loss ratio has decreased to 75% (from a maximum of 96% the previous  year). The highest loss ratio for MTPL in the reporting period is  recorded by Armenia Insurance (88%), and this insurance company is  currently the leader in the number of vehicles with MTPL policies.  The largest volume of insurance premiums under current MTPL contracts  is provided by Armenia Insurance and Nairi Insurance - 1.8-1.6  billion drams (22-20% of the total volume), which are also leaders in  the volume of compensation in this class - 1.2 billion drams (21% of  the total volume). Armenia Insurance and LIGA Insurance stand out for  their large payments in cases of simplified accident registration  (Europrotocol) - 22% of the total market volume. Armenia Insurance is  also a leader in  E- policies, holding 38.1 thousand contracts or 35%  of the total on the market. Armenia Insurance leads in terms in total  number of active contracts with- 74.7 thousand or 24% of the total   on the market.

Note that in April 2023, the liberalization of tariffs for compulsory  motor third party liability insurance (CMTPLI) began in the Armenian  insurance market. Within a quarter, the loss ratio for this class  started to increase. This trend continued until 2025.  Let us recall  that since the end of July 2023, 7 insurance companies have  been  operating in Armenia, as EFES Insurance Company has reentered the  market and is currently preparing to enter the compulsory motor third  party liability insurance (CMTPLI) segment. (The calculated exchange  rate of the dram against the US dollar as of 31.03.2025 was AMD  391.57  / $ 1, against AMD 393.28  / $ 1 as of 31.03.2024).