ArmInfo. In the Armenian insurance market, the loss ratio for MTPL insurance, after declining throughout 2025 from 81.8% to 76.3%, began to increase in 2026. This trend continued until May, after which a decline was observed, reaching 73.1% for January-May (from 73.2% in the same period in 2025). This is evidenced by data from the Armenian Bureau of Motor Insurers.
The decline in the loss ratio from January to May 2026 was observed against the backdrop of an acceleration in the annual growth rate of the number of active contracts from 6.8% to 8.9%, the volume of insurance premiums from 16% to 19.2%, and a more significant acceleration in the growth rate of compensation from 5.1% to 18%.
According to the Bureau, the number of vehicles with compulsory motor third-party liability insurance (CMTPLI) policies is growing moderately year-on-year, at 6.7% (compared to 3.2% a year ago). In quantitative terms, as of June 2026, there were 722,686 vehicles with CMTPLI policies in the country, but the number of active contracts was 585,234 (excluding terminated contracts - 533,774). The share of E- policies in the total number of MTPL policies increased year-on-year from 36% to 38%, reaching 220,222 by June of this year (growth slowed from 21.3% to 14.9%).
From January to May 2026, the volume of insurance premiums collected under existing policies exceeded 15.6 billion drams ($42.4 million), while the volume of insurance claims reached 10.6 billion drams ($28.9 million). Moreover, the volume of compensation paid out under simplified accident registration (Europrotocol) cases worsened in annual dynamics, reversing from 59.8% growth to a 5.3% decline, amounting to 1.5 billion drams ($3.96 million). Along with this, the annual dynamics of the average size of a single payment also worsened - from 29.8% growth to 9.6% decline, amounting to 111,360 thousand drams ($303, compared to $321 a year ago). At the same time, for total insurance compensation, the average size of a single payment maintained growth, but with an annual rate slowing from 6.8% to 4.1%, amounting to 279,419 thousand drams ($759, compared to $699 a year ago).
According to the Bureau, REGO Insurance covers the largest number of vehicles with MTPL policies - 136,587 units (approximately 19% of the market). Incidentally, this insurance company's MTPL loss ratio increased year-on-year from 69% to 74%. INGO Insurance has the highest MTPL loss ratio - 81% (versus 70% a year ago), while Nairi Insurance has the lowest - 60% (versus 62% a year ago).
Nairi Insurance and REGO Insurance generate the largest volume of insurance premiums under existing MTPL policies - over 2.9-2.7 billion drams (19-17% of the market total). However, INGO and Nairi Insurance continue to lead in terms of compensation in this class, with volumes of 2-1.9 billion drams (19- 17% of the total volume). INGO has the largest payouts for cases of simplified registration of accidents (Europrotocol) - 369.1 million (25% of the total market volume). INGO also continues to record the leading number of E-policies - 80,499 thousand (37% of the total number of such contracts on the market), LIGA Insurance ranks second with 41,818 thousand (19%), and Armenia Insurance ranks third with 36,062 thousand (16%). Nairi Insurance maintains the minimum number of E-policies - 10,775 thousand (4.9% of the total number of such contracts on the market). In terms of the total number of active contracts, REGO Insurance and Nairi Insurance hold the top two positions, with 126,517 and 104,929 contracts, respectively (or 22% and 18% of the total market). However, it's worth noting that Nairi Insurance, the leader in insurance premiums, also has a higher number of terminated contracts: 9,248 (with 132.4 million drams outstanding or already paid). INGO is slightly behind, with 11,010 (with 142.5 million drams outstanding or already paid). Armenia Insurance and LIGA Insurance have the fewest terminated contracts: 5,795 and 7,768, respectively.
It should be noted that in April 2023, the Armenian insurance market began liberalizing MTPL tariffs, and within a quarter, the loss ratio for this class began to increase. This trend continued until 2025, with a significant increase in MTPL tariffs beginning in February, allowing insurance companies to significantly improve their operating efficiency, and the loss ratio began to decline. However, in 2026, specifically beginning in February, the loss ratio resumed its upward trend, continuing until May.
In early March of this year, the Armenian Bureau of Motor Insurers announced that, as part of amendments to the "General Conditions of MTPL," increased insured amounts and maximum indemnity limits will come into effect on April 1, 2026. Specifically, the insured amounts and maximum indemnity limits have been increased as follows: The current 1.8 million drams for property damage has been increased to 2.5 million drams; The insurance premium for damage to health has been increased from the current 3.3 million drams 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. It should be noted that, as of the end of July 2023, seven insurance companies have been operating in Armenia, 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 of the dram to the US dollar as of May 30, 2026, was 368.18 drams per US dollar, compared to 383.94 drams per US dollar as of May 30, 2025.)
