ArmInfo. In the Armenian insurance market, the loss ratio for OSAGO began to decrease in 2025, amounting to 73.3% at the end of the first half of the year (compared to 79.1% a year earlier), as evidenced by data from the Bureau of Motor Insurers of Armenia. The decline in the loss ratio during the reporting period was observed alongside improvements in the annual dynamics of several active contracts from a 1.5% decline to 7.6% growth, with an acceleration in the growth of insurance premiums from 4% to 16.8%, and a decrease in the growth of compensation from 22.9% to 6.1%. The Bureau, reported a slight year-on-year increase of 3.5% in the number of vehicles with MTPL insurance policies, compared to 5.6% growth previous year. In quantitative terms, by July 2025, there were 682,083 thousand vehicles with MTPL insurance policies in the country, but the number of active policies stood at 661,197 (excluding terminated policies - 605,408).
In the total number of MTPL policies, the share of E-policies increased from 32% to 36% over the year, amounting to 236,190 by July of this year, with a slightly noticeable slowdown in annual growth from 28.1% to 22.1%. According to the results of Q1 2025, the volume of insurance premiums collected under current contracts exceeded 16 billion drams ($41.7 million), and the volume of insurance compensation reached 10.9 billion drams ($28.2 million). Moreover, the volume of compensation paid in cases of simplified registration of road accidents (Europrotocol) accelerated in annual growth from 23.3% to 64.2%, amounting to 1.9 billion drams ($4.8 million). The average size of one payment accelerated in annual growth from 10.7% to 33.2%, reaching 122,885 drams ($320, compared to $238 a year ago). However, for total insurance compensations, the average size of one payment slowed in annual growth from 12.5% to 5.3%, amounting to 268,935 thousand drams ($700, compared to $658 a year ago).
According to the Bureau's data for the first half of 2025, the largest number of vehicles with an MTPL policy is now covered by Nairi Insurance with 120,510 units (about 18% of the market). Their loss ratio for MTPL decreased from 68% to 63% over the year (this is the lowest level on the market, the same as the previous year). A slightly smaller number of vehicles with an MTPL policy are covered by the previous leader, LIGA Insurance with 118,027, whose loss ratio for MTPL decreased to 72% (from a maximum of 89% a year earlier). The highest loss ratio for MTPL in the reporting period is recorded by Armenia Insurance (81%). This insurance company ranks 3rd in terms of the number of vehicles with MTPL policies (115,692 thousand units).
The largest volume of insurance premiums under current MTPL contracts is provided by Nairi Insurance and Armenia Insurance, totaling 3.3-2.9 billion drams (21-18% of the total volume). They are also leaders in terms of compensation in this class - 2.2-2.3 billion drams (20-21% of the total volume). Armenia Insurance and LIGA Insurance stand out for making the largest payments in cases of simplified registration of accidents (Europrotocol) - 22-20% of the total volume on the market. INGO Insurance leads in the number of E-policies with 99,243 (42% of the total number of such contracts on the market), followed by Armenia Insurance with 59,996 (25%). REGO Insurance and Armenia Insurance hold the two top positions in terms of the total number of active contracts, with 131.9 thousand and 129.1 thousand, respectively (20-19.5% of the total number on the market).
Note that since April 2023, the Armenian insurance market has been gradually liberalizing tariffs for compulsory motor third-party liability insurance (CMTPLI). Within a quarter, the loss ratio for this class began to increase. This trend continued until 2025. Recall that since the end of July 2023, 7 insurance companies have been already operating in Armenia, as EFES Insurance Company reentered the market and is currently preparing to enter the compulsory motor third-party liability insurance (CMTPLI) segment. (The exchange rate of the dram against the US dollar was AMD 384.47/$1as of 30.06.2025, compared to AMD 388.16 /$1 as of 30.06.2024).
