ArmInfo. In the Armenian insurance market, the loss ratio for compulsory motor third-party liability insurance (CMTPLI) decreased slightly in January-September 2026, to 74.5% from 75.2% for the same period in 2025. This is observed against the backdrop of an acceleration in the annual growth of the number of active contracts from 8.1% to 10%, a subtle slowdown in the growth of insurance premiums from 17.8% to 17.2%, and a noticeable acceleration in the growth of compensation from 8.3% to 18.1%.
Moreover, the loss ratio began to decline in May of this year, following an increase over the previous four months, while throughout 2025, the indicator had been declining from 81.8% to 76.3%. This is evidenced by data from the Armenian Bureau of Motor Insurers.
Experts note that the cost of compulsory motor insurance (CMTPLI) is rising, allowing insurance companies to offset inflation risks amid rising inflation in general and rising spare parts prices in particular. Moreover, there is a tendency for insurance companies to charge less unprofitable drivers higher premiums, thereby smoothing out their overall statistics. In this regard, consumers, especially "accident-free" drivers, have doubts about the effectiveness of the bonus-malus system, specifically the impression that this mechanism either does not work at all or is used without "bonuses."
According to the Bureau, the number of vehicles with CMTPLI policies is growing moderately year-on-year, but at an accelerating rate from 4.7% to 7%. In quantitative terms, as of October 2026, there were 749,242 vehicles in the country. There are currently 1.1 million vehicles with MTPL insurance, but the number of active policies slightly exceeded 1.1 million (excluding terminated policies – 1 million). The share of E-policies in the total number of MTPL policies increased year-on-year from 36% to 37%, reaching 422,453 thousand by October of this year (growth slowed from 22.4% to 14.9%).
During the first nine months of 2026, the volume of insurance premiums collected under active policies reached 29.4 billion drams ($81 million), and the volume of insurance claims exceeded 20 billion drams ($55.1 million). Moreover, the volume of compensation paid out for simplified accident registration cases (Europrotocol) slowed significantly in year-on-year growth from 63.8% to a meager 1.4%, amounting to 2.9 billion drams ($7.9 million). At the same time, the average size of a single payment began to decrease - by 9.2% (versus 31.8% growth a year ago), amounting to 112,069 thousand drams ($309, versus $323 a year ago). At the same time, for total insurance compensation, the average size of a single payment continued to grow, slightly accelerating in pace from 4.7% to 6% and amounting to 287,946 thousand drams ($794, versus $710 a year ago).
According to the Bureau, the largest number of vehicles with OSAGO policies are covered by REGO Insurance. - 138,944 units (almost 19% of the market). Incidentally, this insurance company's loss ratio for compulsory motor third-party liability insurance (CMTPLI) increased year-on-year from 70% to 75%. INGO Insurance Company has the highest loss ratio for CMTPLI - 81% (versus 79% a year ago), while Nairi Insurance Company has the lowest - 66% (the same as a year ago).
Nairi Insurance and INGO generate the largest volume of insurance premiums under existing CMTPLI policies - 5.6-5.4 billion drams (19-18% of the total market volume). The same two companies, INGO and Nairi Insurance, continue to lead in terms of compensation in this class, with volumes of 3.6-3.5 billion drams (18-17.6% of the total volume). LIGA Insurance and INGO have the largest payouts for cases of simplified registration of accidents (Europrotocol) - 694.1 million and 645.8 million, respectively (24.2% and 22.5% of the total market volume). INGO continues to have the leading number of E-policies - 155,824 thousand (almost 37% of the total number of such contracts on the market), and LIGA Insurance and Armenia Insurance occupy the 2nd and 3rd positions - 73,473 thousand and 69,988 thousand, respectively (or over 17% and 16%). Nairi Insurance maintains the lowest number of E-policies – 21,709 thousand (5% of the total number of such contracts on the market). REGO Insurance leads in terms of the total number of active contracts – 249,669 thousand (or 22% of the total number on the market). It is worth noting that INGO and Nairi Insurance, which lead in insurance premiums, also have the highest number of terminated contracts – 19,402 thousand and 17,222 thousand, respectively (with a payable or already paid amount of 259.9 million drams and 248.5 million drams, respectively). Armenia Insurance and LIGA Insurance recorded the lowest number of terminated contracts – 10,557 and 14,149, respectively.
It's worth noting 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, when, beginning in February, a significant increase in MTPL tariffs allowed insurance companies to significantly improve their operating efficiency, and the loss ratio began to decline. However, already in 2026, specifically starting in February, the loss ratio resumed growing, continuing this trend until May, after which a decline was observed.
The Armenian Auto Insurers' Bureau, as part of amendments to the "General Conditions of Compulsory Motor Liability Insurance" Rules, introduced increased insured amounts and maximum compensation limits effective April 1, 2026. Specifically, the insured amounts and maximum compensation limits have been increased as follows: For property damage, the current 1.8 million drams have been increased to 2.5 million drams; For damage to health, the current 3.3 million drams have 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.
As a reminder, there are seven insurance companies operating in Armenia, six of which are licensed for compulsory motor third-party liability insurance (CMTPL). Only Efes is not licensed for this class. (The current exchange rate for the dram against the US dollar as of
On September 30, 2026, the exchange rate was 362.83 drams per US dollar, compared to 382.52 drams per US dollar on September 30, 2025.)
