ArmInfo. In Armenia's insurance market, the CMTPL loss ratio, after declining throughout 2025 from 81.8% to 76.3%, began to rise in 2026, reaching 79.6% by the end of the first quarter (compared to 79% in Q1 2025). This is evidenced by data from the Armenian Motor Insurers' Bureau.
The increase in the loss ratio in Q1 2026 was observed against the backdrop of an acceleration in the annual growth of active contracts from 5.1% to 7.9%, insurance premiums from 13.7% to 18%, and a pronounced surge in the growth of insurance claims from 4.3% to 20.4%.
According to the Bureau, the number of vehicles with CMTPL policies increased more significantly year-on-year — by 4.7%, whereas a year ago the growth was only 2.1%. In quantitative terms, by April 2026, there were 702,550 units of vehicles with CMTPL contracts in the country, but the number of active contracts stood at 341,782 (310,459 excluding terminated ones). Within the total number of CMTPL contracts, the share of E-policies increased year-on-year from 36% to 39%, reaching 129,667 by April of this year, with annual growth accelerating from 15.6% to 17.4%.
By the end of the first quarter of 2026, the volume of insurance premiums collected under active contracts exceeded 9.2 billion drams ($24.5 million), and the volume of insurance claims reached 6.8 billion drams ($18 million). Notably, the volume of claims paid under simplified accident reporting (European Protocol) slowed down sharply in annual growth from 62.5% to 15.6%, totaling 1.1 billion drams ($2.9 million). Concurrently, the annual growth of the average payment size stalled — from 34.3% to 7.3%, amounting to 133,205 drams ($353, compared to $317 a year ago). Meanwhile, for total insurance claims, the annual growth of the average payment size slowed less significantly — from 8.3% to 4%, totaling 284,033 drams ($753, compared to $697 a year ago).
According to the Bureau's data, INGO Insurance holds the largest number of vehicles covered by CMTPL policies — 129,684 units (approximately 19% of the market). Notably, this same company recorded the highest CMTPL loss ratio during the reporting period at 88% (compared to a minimum of 67% a year earlier), while the lowest was recorded by Nairi Insurance at 71% (down from 72% a year ago).
The largest volume of insurance premiums from active CMTPL contracts is provided by INGO and Nairi Insurance — 1.8-1.7 billion drams (20-19% of the total market volume, respectively). These same companies lead in insurance claims within this class, with volumes of 1.3-1.2 billion drams (19-18% of the total volume). INGO also distinguished itself with the highest payouts for simplified accident reporting (European Protocol) — 222.6 million drams (21% of the total market volume).
The leading number of E-policies is also recorded by INGO — 53,505 units (41% of the total such contracts in the market), followed by LIGA Insurance in second place with 25,647 units (20%), and Armenia Insurance in third place with 19,241 units (15%). Meanwhile, the minimum number of E-policies remains with Nairi Insurance — 5,797 units (only 4.5% of the market total).
In terms of the total number of active contracts, the first two positions are held by REGO Insurance and INGO — 70,535 and 67,137 units, respectively (or 21% and 20% of the market total). However, it is worth noting that the leaders in insurance premiums — INGO and Nairi Insurance — also lead in the number of terminated contracts: 6,806 and 5,560, respectively (with amounts payable or already paid totaling 89-79 million drams). The smallest number of terminated contracts was recorded by Armenia Insurance and LIGA Insurance — 3,670 and 4,677, respectively.
It should be noted that since April 2023, Armenia's insurance market began the transition toward CMTPL tariff liberalization, and just a quarter later, the loss ratio for this class began to rise. This trend continued until 2025; starting in February 2025, a significant increase in CMTPL tariffs allowed insurance companies to notably improve their operational efficiency, pushing the loss ratio downward. However, in 2026, specifically from February, the growth of the loss ratio resumed.
At the beginning of March this year, the Armenian Motor Insurers' Bureau announced that within the framework of amendments to the "General Terms and Conditions of CMTPL" Rules, increased insurance amounts and maximum reimbursement limits would come into force on April 1, 2026. Specifically, the limits have been increased as follows:
Property damage: Raised to 2.5 million drams (from the current 1.8 million drams);
Personal injury (health damage): Raised to 3.5 million drams (from the current 3.3 million drams);
Aggregate limits per incident: Proportionally increased to 25 million drams for property and 35 million drams for personal injury for all victims of a single insurance event.
It is worth recalling that since the end of July 2023, 7 insurance companies have been operating in Armenia, following the return of "EFES" Insurance to the market. However, "EFES" is not licensed for the Compulsory Motor Third Party Liability (CMTPL) class. (The calculated exchange rate of the dram to the US dollar as of March 31, 2026, was 377.16 AMD/$1, compared to 391.57 AMD/$1 on March 31, 2025).
