In  Armenia`s insurance market, the loss ratio for OSAGO  decreased  to 73.2% by June 2025

ArmInfo. In the Armenian insurance market, the loss ratio for OSAGO has begun to decrease since 2025, amounting to 73.2% in January-May compared to 79.7% the previous year. as evidenced by data from the Bureau of Motor Insurers of Armenia.

The decrease in the loss ratio during the reporting period was seen alongside an improvement in the annual dynamics of  active contracts, shifting from a 1% decline to a 6.8% growth. There was also an increase in t insurance premiums growth from 3% to 16%, and a slowdown in  compensation growth from 25.1% to 5.1%. The Bureau, reported a slight year-on-year increase of  3.2% in the number of vehicles with MTPL insurance policies, compared to 6% growth the previous year. As of June 2025, there were 677,264 vehicles with MTPL  insurance policies in the country. However, the number of active policies stood at 537,559 (excluding terminated policies, which totaled 490,483).

In the total number of MTPL policies, the share of E-policies  increased over the year from 32% to 36%, amounting to 191,705 by June 2025, with a slightly noticeable slowdown in annual growth from 29% to 21.3%. According to the results of January-May 2025, the volume of insurance premiums collected under current contracts exceeded 13.1 billion drams ($34.1 million), and the volume of insurance compensations reached 9.02 billion drams ($23.5 million). The volume  of compensations paid in cases of simplified registration of road accidents (Europrotocol) accelerated in annual growth from 24.5% to 59.8%, exceeding 1.5 billion drams ($4 million), and the average size of one payment accelerated in annual growth from 14.5% to 29.8%, reaching 123,153 thousand drams ($321, compared to $245 the previous  year). For total insurance compensations, the average size of one payment slowed in annual growth from 12% to 6.8%, amounting to 268,398  drams ($699, compared to $649 the previous year). According  to the Bureau's data for January-May 2025, the largest number of vehicles with an MTPL policy is now covered by Armenia Insurance Company - 123,128 units (over 18% of the market). It is worth noting that the company's MTPL loss ratio has increased to 81% (from 70% a year earlier). 

A slightly smaller number of vehicles with an MTPL policy are covered by the previous leader, LIGA Insurance - 121,263 units, whose MTPL loss ratio decreased to 72% (from a maximum of 90% a year earlier). The highest loss ratio for MTPL is recorded by Armenia Insurance (81%), making this  company is current leader in the number of vehicles with MTPL policies. The largest volume of insurance premiums under current MTPL contracts is provided by Nairi Insurance and Armenia Insurance - 2.7-2.6 billion drams (21-20% of the total volume), who are also leaders in terms of compensation in this class - 1.8-1.9 billion drams (20-21% of the total volume). Armenia Insurance and LIGA Insurance stand out for the largest payments in  cases of simplified registration of accidents (Europrotocol) - 22-21% of the total market volume. INGO Insurance issued the highest number of E-policies - 74,870 or 39% of the total number of such contracts on the market. In terms of the total number of active contracts, Armenia Insurance and REGO Insurance hold the top two positions - 111.4 thousand and 107.3 thousand, respectively (21-20% of the total  number on the market).

Note that in April 2023, the Armenian insurance market began the transition to liberalize tariffs for compulsory motor third-party liability insurance (CMTPLI). After a quarter, the loss ratio for this class started to increase. This trend continued until 2025.

Recall that since the end of July 2023, 7 insurance companies have been operating in Armenia, with EFES Insurance Company re-entering the market. It is currently preparing to enter the compulsory motor third- party liability insurance (CMTPLI) segment. (the settlement rate of the dram against the US dollar as of 31.05.2025 was AMD 383.94/$1, against AMD 387.38/$1 as of 31.05.2024).