In  Armenia`s insurance market,  loss ratio for OSAGO decreased to  74% by September 2025

ArmInfo.  In the Armenian insurance market, the loss ratio for OSAGO began to decrease in 2025, amounting to 74% in January-August (compared to 79.1% the previous  year), as evidenced by data from the Bureau of Motor Insurers of  Armenia.

The decline in the loss ratio during the reporting period occurred  alongside an improvement in the annual dynamics of  active contracts,  shifting from a 1.1% decline to a 7.8% growth. There was also an  acceleration in the growth of insurance premiums from 6.9% to 17.5%,  and a weakening in the compensation growth  from 23.7% to 6.6%. It   is worth noting that since February of this year, there has been a  significant increase in OSAGO tariffs, which has allowed insurance  companies to significantly improve the level of efficiency of their  activities.

According to the Bureau, the number of vehicles with OSAGO policies  saw a moderate  year-on-year increase by 4.4%, while a year ago the  growth was 5.6%. In quantitative terms, by September 2025, there were  699,861  vehicles with OSAGO contracts in the country, but the number  of active contracts amounted to 917,945 (minus terminated ones -  841,154). In the total number of OSAGO contracts, the share of E-  policies increased over the year from 32% to 36%, amounting to  324,165 by September of this year, with some slowdown in annual  growth from 27.5% to 22%.

According to the results of January-August 2025, the volume of  insurance premiums collected under current contracts exceeded 22.1  billion drams ($57.9 million), while the volume of insurance  compensation amounted to 14.8 billion drams ($38.7 million).  Moreover, the volume of compensation paid in cases of simplified  registration of accidents (Europrotocol) accelerated in annual growth  from 27.2% to 61.5%, amounting to 2.5 billion drams ($6.6 million).  The average size of one payment accelerated in annual growth from  11.4% to 32.3%, reaching 123,540 drams ($323, compared to $241 a year  ago). The average size of one payment slowed in annual growth from  11.6% to 4.6%, amounting to 269,466 drams ($704, compared to $665 a  year ago) for total insurance compensations.  According to the  Bureau's data for January-August 2025, the largest number of vehicles  with an MTPL policy is now covered by Nairi Insurance - 124,413 units  (almost 18% of the market), which, by the way, has a loss ratio for  MTPL over the year decreased from 70% to 65% (and this, like a year  ago, is the lowest level on the market). A slightly smaller number of  vehicles with an MTPL policy are covered by REGO Insurance - 121,790  units, whose loss ratio for MTPL has decreased over the year from 70%  to 68%. 

The highest loss ratio for MTPL in the reporting period is recorded  by Armenia Insurance - 81% (compared to 73% a year ago), which ranks  5th in terms of the number of vehicles with MTPL policies (112,624  units). The largest volume of insurance premiums under current MTPL  contracts is provided by Nairi Insurance and INGO - 4.4-4.2 billion  drams (20-19% of the total volume). However,  in terms of  compensation in this class, Armenia Insurance and Nairi Insurance are  leaders with almost the same volumes - 2.97-2.9 billion drams  (20-19.6% of the total volume). Armenia Insurance and LIGA Insurance  are distinguished by the largest payments in cases of simplified  registration of accidents (Europrotocol) - 21-20% of the total volume  on the market. The leading number of E-policies is recorded by INGO  Insurance - 137,125  (over 42% of the total number of such contracts  on the market), and Armenia Insurance, 76,552  (24%), comes second.  In terms of the total number of active contracts, the first two  positions are occupied by REGO Insurance and INGO - 187.5  and 178.8,  respectively (or 20.4% and 19.5% of the total number on the market).

It should be noted that since April 2023, the transition to  liberalization of tariffs for compulsory motor third-party liability  insurance (CMTPLI) has started in the insurance market of Armenia,  and after a quarter, the loss ratio for this class began to grow.  This trend continued until 2025, at the beginning of which - since  February, a significant increase in tariffs for CMTPLI allowed  insurance companies to significantly increase the level of efficiency  of their activities and the loss ratio went down.

 Let us recall that 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 (CTP) segment. (The   exchange rate of the dram against the US dollar as of 31.08.2025 was  AMD 382.52/$1, compared to AMD 387.53/$1 as of 31.08.2024).