In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025

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).