ArmInfo. The loss ratio for compulsory motor third-party liability insurance (CMTPLI) in Armenia's insurance market has decreased from 81.8% to 76.3% in 2025, according to data from the Armenian Bureau of Motor Insurers.
The decline in the loss ratio for the reporting year 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 8.3% increase, an acceleration in insurance premium growth from 9.3% to 17.5%, and a slowdown in claims growth from 20.3% to 8.4%. It is worth noting that, starting in February 2025, a significant increase in CMTPLI rates was recorded, 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 more significantly in 2025, by 3.2%, compared to the 1.1% recorded in 2024. In quantitative terms, by 2026, there were 696,113 vehicles with CMTPLI policies in the country, but the number of active policies exceeded 1.426 million (excluding terminated policies - 1.305 million).
Of the total number of CMTPLI policies, the share of E-policies increased from 31% to 35% in 2025, reaching 505,281 thousand, maintaining double-digit growth at 22.3%. By the end of 2025, the volume of insurance premiums collected under existing contracts exceeded 34.9 billion drams ($91.6 million), and the volume of insurance indemnities amounted to 23.7 billion drams ($62.1 million). Moreover, the volume of compensation paid out under simplified accident registration (Europrotocol) accelerated in year-on-year growth - from 39.1% to 47.2%, exceeding 3.9 billion drams ($10.3 million), and the average size of one payment accelerated in year-on-year growth from 19.1% to 22.9%, reaching 124,199 thousand drams ($326, compared to $255 in 2024). At the same time, for general insurance compensation, the average size of one payment slowed in annual growth from 11.3% to 4.7%, amounting to 274,479 thousand drams ($720, compared to $661 in 2024).
According to the Bureau's data for 2025, REGO Insurance now covers the largest number of vehicles with OSAGO policies - 123,883 units (approximately 18% of the market), which, incidentally, saw its loss ratio for OSAGO policies decrease from 73% to 71% over the year. Nairi Insurance has a slightly smaller number of vehicles with OSAGO policies - 122,872 units, whose loss ratio for OSAGO policies decreased over the year from 73% to 70% (and this is the lowest level on the market). Armenia Insurance recorded the highest loss ratio for OSAGO in the reporting year - 82% (versus 81% in 2024), and this insurance company ranks 6th in terms of the number of vehicles with OSAGO policies (109,348 units). Nairi Insurance and INGO generate the largest volume of insurance premiums under existing MTPL policies - 6.9-6.2 billion drams (20-18% of the total market volume), but Nairi Insurance and Armenia Insurance lead in terms of compensation in this class with almost equal volumes - 4.6-4.5 billion drams (19.4-19.2% of the total volume). Armenia Insurance distinguished itself with the largest payouts for cases of simplified registration of accidents (Europrotocol) - 775.4 million (20% of the total market volume). INGO Insurance has the leading number of E-policies - 200,926 thousand (40% of the total number of such policies on the market), and Armenia Insurance is in second place - 116,285 thousand (23%).
Nairi Insurance maintains the lowest number of E-policies at 17,477 (only 3.5% of the total number of such contracts on the market). In terms of the total number of active contracts, REGO Insurance and Armenia Insurance hold the top two positions, with 285,800 and 261,600, respectively (or 20% and 18% of the total market).
It's worth noting that 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 operating 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 returned to the market, preparing to enter the compulsory motor third-party liability insurance (MTPL) segment. (The dram/US dollar exchange rate as of December 31, 2025, was 381.36 drams/$1, compared to 396.56 drams/$1 on December 31, 2024.)
