ArmInfo. In the Armenian insurance market, the loss ratio for compulsory motor third-party liability insurance (CMTPLI), after declining throughout 2025 from 81.8% to 76.3%, has begun to rise since 2026, reaching 80.2% in the first two months (versus 77.5% in January-February 2025). This is evidenced by data from the Armenian Bureau of Motor Insurers.
The increase in the loss ratio in January-February 2026 was observed against the backdrop of an acceleration in the annual growth of the number of active contracts from 2.1% to 6.3% and the volume of insurance premiums from 11.7% to 16.1%, and a reversal in claims from a 1.1% decline to a 6.7% increase.
According to the Bureau, the number of vehicles with MTPL policies increased more significantly year-on-year, by 4.3%, compared to only 1.4% a year ago. In quantitative terms, as of March 2026, there were 696,298 vehicles with MTPL policies in the country, but the number of active policies was 216,965 (excluding terminated policies - 196,578).
Of the total number of MTPL policies, the share of E-policies increased year-on-year from 35% to 39%, reaching 82,072 thousand by March of this year, with an acceleration in annual growth from 13.6% to 17.2%. According to the results of January-February 2026, the volume of collected insurance premiums under existing contracts reached 6.1 billion drams ($16.1 million), and the volume of insurance indemnities exceeded 4 billion drams ($10.7 million). Moreover, the volume of indemnities paid out under simplified accident registration (Europrotocol) significantly slowed in year-on-year growth from 62.8% to 6.2%, amounting to 660.2 million drams ($1.8 million). At the same time, the annual growth of the average single payment also stalled - from 36.7% to 8%, amounting to 133,995 thousand drams ($355, compared to $315 a year ago). Meanwhile, the average per-payment size for total insurance claims slowed less significantly year-on-year, from 8.2% to 3.1%, reaching 284,742,000 drams ($755, compared to $702 a year ago).
According to the Bureau, INGO Insurance Company covers the largest number of vehicles with a MTPL policy - 129,983 units (approximately 19% of the market). Incidentally, its MTPL loss ratio increased to 91% (from a minimum of 66% a year earlier). Armenia Insurance recorded the highest MTPL loss ratio during the reporting period - 100% (compared to 77% a year earlier), while Nairi Insurance had the lowest - 54% (compared to 70% a year earlier).
INGO and Nairi Insurance generate the largest volume of insurance premiums under existing MTPL policies - 1.2-1.1 billion drams (21-19% of the total market volume). These same insurance companies also lead in compensation in this class, with compensation amounts of 818-702 million drams (20-17% of the total). INGO delivered the largest payouts for simplified accident reporting (Europrotocol) cases - 141 million (21% of the total market volume). INGO also has the leading number of E-policies - 37,653 thousand (46% of the total number of such contracts on the market), LIGA Insurance is in second place - 15,601 thousand (19%), and Armenia Insurance is in third place - 11,343 thousand (14%). Nairi Insurance maintains the lowest number of E- policies - 3,511 thousand (only 4% 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 INGO and REGO Insurance - 47,003 thousand and 42,572 thousand, respectively (or 22% and 20% 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 the number of terminated contracts, with 4,345 and 3,637 thousand, respectively (with an amount of 57- 53 million drams outstanding or already paid). Armenia Insurance and LIGA Insurance have the fewest terminated contracts (2,485 and 2,990, 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. But already in 2026, and specifically since February, the loss ratio has resumed its growth. In early March of this year.
The Armenian Bureau of Motor Insurers announced that, as part of amendments to the General Conditions of Compulsory Motor Liability Insurance (CMTPLI), 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: 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, 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 dram against the US dollar as of February 28, 2026, was 377.00 drams per US dollar, compared to 393.35 drams per US dollar as of February 28, 2025.).
