ArmInfo. The loss ratio for mandatory motor third-party liability insurance (MTPL) in Armenia decreased to 73.2% in January-August 2026 from 74% over the same period in 2025. This was observed against the backdrop of an acceleration in the annual growth of the number of active policies from 7.8% to 9.6%, insurance premiums from 17.5% to 17.8%, and a more noticeable acceleration in the growth of claims paid from 6.6% to 18.7%.
Moreover, the decline in this indicator began in May of this year, following growth during the previous four months, whereas throughout 2025 the indicator declined from 81.8% to 76.3%. This is evidenced by data from the Bureau of Motor Insurers of Armenia.
Experts note that the cost of MTPL is increasing, thereby allowing insurance companies to offset inflation risks amid rising inflation overall and the increasing cost of spare parts in particular. Moreover, there is a trend whereby insurance companies charge higher premiums to less loss-prone drivers, thus smoothing out their overall statistics. In this regard, consumers, especially “accident-free” drivers, have doubts about the effectiveness of the bonus-malus system; in particular, there is an impression that this mechanism either does not work at all or is used without “bonuses.”
According to the Bureau, the number of vehicles with MTPL policies is growing moderately year on year—by 6.8% (compared with 8.1% a year earlier). In quantitative terms, by September 2026 the country had 747,166 thousand vehicles with MTPL policies, while the number of active policies slightly exceeded 1 million (after deducting terminated policies—923,119 thousand). The share of e-policies in the total number of MTPL policies increased year on year from 36% to 37%, reaching 370,139 thousand by September this year (growth slowed from 22% to 14.2%).
Over the 8 months of 2026, the volume of insurance premiums collected under active policies reached 26.1 billion drams ($71.6 million), while claims paid amounted to 17.6 billion drams ($48.2 million). At the same time, the annual growth in claims paid for accidents processed under the simplified procedure (the European Accident Statement) slowed sharply from 61.5% to an almost stagnant 0.6%, reaching 2.5 billion drams ($6.9 million). Alongside this, the average amount of an individual payment began to decline—by 9.5% (compared with 32.3% growth a year earlier), reaching 111.851 thousand drams ($307, compared with $323 a year earlier). Meanwhile, for total insurance claims, the average payment continued to grow, accelerating slightly from 4.6% to 6.2% and reaching 286.156 thousand drams ($785, compared with $704 a year earlier).
According to Bureau data, the largest number of vehicles with MTPL policies is covered by “REGO Insurance”—144,274 thousand vehicles (more than 19% of the market). Incidentally, this insurer’s MTPL loss ratio increased year on year from 68% to 74%. The highest MTPL loss ratio is recorded by “INGO”—80% (compared with 76% a year earlier), while the lowest is recorded by “Nairi Insurance”—64% (compared with 65% a year earlier).
The largest volume of premiums collected under active MTPL policies is provided by Nairi Insurance and REGO Insurance—more than 5-4.6 billion drams (19-18% of the total market volume). However, INGO and Nairi Insurance continue to lead in claims paid in this class, with amounts of 3.3-3.1 billion drams (19-17% of the total). The largest payments for accidents processed under the simplified procedure (the European Accident Statement) are made by LIGA Insurance and INGO—584.5 million and 571.6 million, respectively (23.2% and 22.7% of the total market volume). INGO continues to have the largest number of e-policies—127,027 thousand (more than 34% of all such policies in the market), while LIGA Insurance and Armenia Insurance rank second and third, respectively, with 68,259 thousand and 63,979 thousand (or more than 18% and 17%). Nairi Insurance continues to have the smallest number of e-policies—19,174 thousand (5% of all such policies in the market). In terms of the total number of active policies, the top two positions are held by REGO Insurance and Nairi Insurance—with 223,377 thousand and 181,791 thousand, respectively (or 22% and 18% of the total number in the market). However, it is worth noting that the leader in premiums collected—Nairi Insurance—is also distinguished by a large number of terminated policies—15,129 thousand (with an amount of 217.8 million drams due or already paid), slightly behind INGO in this indicator—16,995 thousand (with an amount of 227.5 million drams due or already paid). The smallest number of terminated policies is recorded by Armenia Insurance and LIGA Insurance—9,321 thousand and 12,579 thousand, respectively.
It should be noted that the transition to tariff liberalization for MTPL began in Armenia’s insurance market in April 2023, and within a quarter the loss ratio for this class began to rise. This trend continued until 2025, at the beginning of which—in February—a substantial increase in MTPL tariffs allowed insurance companies to significantly improve the efficiency of their operations, and the loss ratio began to decline. However, in 2026, specifically from February, the loss ratio began rising again, with this trend continuing until May, after which a decline began to emerge.
The Bureau of Motor Insurers of Armenia, as part of amendments to the “General Conditions of MTPL” Rules, introduced increased insured sums and maximum compensation limits from April 1, 2026. In particular, the insured sums and maximum compensation limits were increased as follows: for property damage, 2.5 million drams was established instead of the current 1.8 million drams; for damage caused to health, 3.5 million drams was established instead of the current 3.3 million drams; at the same time, the insured sums for the total amount of damage caused to all victims as a result of a single insured event were proportionally increased and set at 25 million and 35 million drams, respectively.
It should be recalled that 7 insurance companies operate in Armenia, 6 of which are licensed for the class of compulsory motor third-party liability insurance (MTPL). (The calculated exchange rate of the dram against the US dollar as of 31.08.2026 was 364.47 dr/$1, compared with 382.52 dr/$1 as of 31.08.2025).
