Loss ratio of MTPL contracts goes on decreasing 

ArmInfo. The loss ratio for compulsory motor third-party liability insurance (MTPLI) in the Armenian insurance market has begun to decline since 2025, reaching 75.2% for the first nine months of the year (compared to 79.4% a year  earlier). This is according to data from the Armenian Bureau of Motor  Insurers.

The decline in the loss ratio during the reporting period was  observed against the backdrop of an improvement in the annual  dynamics of the number of active contracts, from a 0.7% decline to an  8.1% increase, an acceleration in insurance premium growth from 8.1%  to 17.8%, and a slowdown in the growth of claims, from 22.7% to 8.3%.  It is worth noting that, since February of this year, there has been  a significant increase in CMTPLI rates, allowing insurance companies  to significantly improve their operating efficiency. According to the  Bureau, the number of vehicles with compulsory motor third-party  liability insurance (CMTPLI) policies increased modestly  year-on-year, by 4.7%, compared to 5.4% the year before. In  quantitative terms, as of October 2025, there were 700,324 vehicles  with CMTPLI policies in the country, but the number of active  policies was 1,040 million (excluding terminated policies - 952,799).

Of the total number of CMTPLI policies, the share of E-policies  increased over the year from 32% to 36%, reaching 367,524 by October  of this year, with a slight slowdown in annual growth from 26.6% to  22.4%.  According to the results of January-September 2025, the  volume of insurance premiums collected under existing contracts  reached 25.1 billion drams ($65.6 million), and the volume of  insurance indemnities exceeded 16.9 billion drams ($44.3 million).  Moreover, the volume of indemnities paid out under simplified  accident registration (Europrotocol) cases accelerated in  year-on-year growth - from 24.5% to 63.8%, exceeding 2.8 billion  drams ($7.4 million), and the average size of one payment accelerated  in year- on-year growth from 11.5% to 31.8%, reaching 123,490  thousand drams ($323, compared to $242 a year ago). At the same time,  for general insurance compensation, the average size of one payment  slowed in year-on-year growth from 11.7% to 4.7%, amounting to  271,602 thousand drams ($710, compared to $670 a year ago).

According to the Bureau's data for January-September 2025, Nairi  Insurance now covers the largest number of vehicles with OSAGO  policies - 127,629 units (over 18% of the market), which,  incidentally, has seen its loss ratio for OSAGO policies decrease  from 70% to 66% over the year (and this, as a year ago, is the lowest  level on the market). REGO Insurance has a slightly smaller number of  vehicles with OSAGO policies - 126,223 units, whose loss ratio for  OSAGO has decreased over the year from 71% to 70%.  Armenia Insurance  has the highest loss ratio for OSAGO in the reporting period - 81%  (versus 72% a year ago), and this insurance company ranks 5th in  terms of the number of vehicles with OSAGO policies (113,626 units).  Nairi Insurance and INGO generate the largest volume of insurance  premiums under existing MTPL policies - 5-4.6 billion drams (20-18%  of the total), but Armenia Insurance and Nairi Insurance lead in this  class in terms of compensation, with nearly equal volumes - 3.4-3.3  billion drams (20-19.5% of the total).

Armenia Insurance and LIGA Insurance generate the largest payouts for  simplified accident reporting (Europrotocol) cases - 577.3-550.7  billion drams (20-19.4% of the total market). INGO Insurance holds  the leading position in the number of E-policies, with 149,637 (41%  of the total number of such contracts on the market), followed by  Armenia Insurance with 87,316 (24%). In terms of the total number of  active contracts, REGO Insurance and Armenia Insurance hold the top  two positions, with 215,100 and 194,900, respectively (or 21% and 19%  of the total on the market).

In April 2023, the Armenian insurance market began liberalizing its  MTPL tariffs, and within a quarter, the loss ratio for this class  began to increase. This trend continued until 2025, at the beginning  of which, in February, a significant increase in MTPL tariffs allowed  insurance companies to significantly improve their efficiency, and  the loss ratio began to decline. As a reminder, seven insurance  companies have been operating in Armenia since the end of July 2023,  as EFES Insurance Company has re-entered the market, preparing to  enter the compulsory motor third-party liability insurance (CMTPL)  segment. (The current exchange rate for the dram against the US  dollar as of September 30, 2025, was 382.52 drams per US dollar,  compared to 387.29 drams per US dollar as of September 30, 2024.)