ArmInfo. In the Armenian insurance market, the loss ratio for OSAGO insurance, after declining throughout 2025 from 81.8% to 76.3%, has begun to rise since 2026, reaching 78.2% for January-April (versus 76.1% for the same period in 2025). This is evidenced by data from the Bureau of Motor Insurers of Armenia.
The increase in the loss ratio from January to April 2026 was observed against the backdrop of an acceleration in the annual growth rate of the number of active contracts from 6.3% to 10.5%, volume of insurance premiums from 15.2% to 18.5%, and a more significant acceleration in the growth rate of compensation from 6.2% to 19.4%.
According to the Bureau, the number of vehicles with compulsory motor third-party liability insurance (CMTPLI) policies is growing moderately year-on-year, at 4.7% (compared to 3.1% a year ago). In quantitative terms, as of May 2026, there were 708,936 vehicles with CMTPLI policies in the country, and the number of active contracts amounted to 458,662 (excluding terminated contracts 416,926). Of the total number of MTPL policies, the share of E-policies increased year-on-year from 36% to 38%, reaching 172,963 by May, 2026 (growth slowed from 19.8% to 15.9%).
From January to April 2026, the volume of insurance premiums collected under existing policies reached 12.3 billion drams ($33.1 million), while the volume of insurance claims approached 8.9 billion drams ($23.9 million). Moreover, the volume of compensation paid out under simplified accident reporting (Europrotocol) significantly slowed in year-on-year growth from 61.4% to 15.1%, exceeding 1.4 billion drams ($3.9 million). At the same time, the average single payment also stalled in year-on-year growth, from 30.7% to 7.8%, amounting to 132,395 thousand drams ($357, compared to $315 a year ago).
Meanwhile, for total insurance claims, the average single payment slowed in year-on-year growth only slightly, from 5.4% to 5.1%, reaching 282,376 thousand drams ($762, compared to $689 a year ago).
According to the Bureau, Nairi Insurance covers the largest number of vehicles with MTPL policies 126,312 units (approximately 18% of the market). Incidentally, this same insurance company has recorded the lowest loss ratio for MTPL insurance during the reporting period 68% (the same as last year), while INGO had the highest 88% (compared to 69% last year).
Nairi Insurance and INGO generate the largest volume of insurance premiums under the existing MTPL policies 2.3-2.2 billion drams (19-18% of the total market volume) They also lead in compensation in this class with volumes of 1.6-1.7 billion drams (18-19% of the total). INGO earned the largest payouts for simplified accident reporting (Europrotocol) cases 302.8 million (21% of the total market volume). INGO also has the leading number of E-policies - 66,160,000 (38% of the total number of such contracts on the market), LIGA Insurance is in second place - 33,612 thousand (19%), and Armenia Insurance is in third place - 27,482 thousand (16%). Nairi Insurance maintains the lowest number of E-policies - 8,209 thousand (only 4.8% of the total number of such contracts on the market). In terms of the total number of active contracts, the first two positions are occupied by REGO Insurance and INGO - 97,519 thousand and 83,252 thousand, respectively (or 21% and 18% of the total number on the market). It's worth noting, however, that the leaders in insurance premiums INGO and Nairi Insurance also lead in several terminated contracts, with 9,003 and 7,433 thousand, respectively (with amounts due or already paid ranging from 117.4 to 106.4 million drams). Armenia Insurance and LIGA Insurance, however, have the fewest terminated contracts, with 4,791 and 6,272, respectively.
It should be noted that in April 2023, the Armenian insurance market began to liberalize 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. In February, a significant increase in CMTPLI tariffs allowed insurance companies to significantly improve their efficiency, and the loss ratio began to decline. However, in 2026, specifically in February, the loss ratio resumed its growing. In early March, 2026, the Auto Insurers' Bureau of Armenia announced that, as part of amendments to the "General Conditions of CMTPLI", increased insured amounts and maximum indemnity limits will come into force on April 1, 2026. In particular, the insured amounts and maximum indemnity limits have been increased as follows: for property damage, the current 1.8 million drams have been increased to 2.5 million drams and the current 3.3 million drams for damage to health has been increased to 3.5 million drams. At the same time, the insured amounts for the total damage caused to all victims as a result of a single insured event have been proportionally increased and set at 25 million and 35 million drams, respectively.
Recall, seven insurance companies have been operating in Armenia since the end of July 2023, following the return of EFES Insurance Company to the market, although it is not licensed for compulsory motor third-party liability insurance (CMTPL). (The exchange rate for the AMD against the USD as of April 30, 2026, was AMD 370.78/1$, compared to AMD389.94/1$ as of April 30, 2025.)
