ArmInfo. The loss ratio within Armenia's Mandatory Third- Party Liability (MTPL) insurance sector saw a downward trend between January and July 2026, dropping to 72.5% compared to 74.4% during the corresponding period in 2025. According to market data, this shift occurred alongside accelerations across several key performance indicators: The annual growth rate of active contracts accelerated from 7.9% to 9.3%; The volume of insurance premiums grew at an increased rate, rising from 17.4% to 18.3%; A more noticeable surge was registered in the volume of indemnities (insurance payouts), which accelerated from 7.4% to 17.9%. This is evidenced by data from the Armenian Bureau of Motor Insurers.
Experts note that the cost of compulsory motor third-party liability insurance (CMTPLI) is rising, allowing insurance companies to offset inflation risks amid rising inflation in general and rising spare parts prices in particular. Furthermore, there is a tendency for insurance companies to charge higher premiums to less unprofitable drivers, thereby smoothing out their overall statistics. This raises doubts among consumers, particularly those with "accident-free" drivers, about the effectiveness of the bonus-malus system, particularly the impression that this mechanism either doesn't 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 – by 5.9% (compared to 4.7% the year before). In quantitative terms, as of August 2026, there were 740,844 vehicles with compulsory motor third-party liability insurance (CMTPLI) policies in the country, with the number of active policies amounting to 864,266 (excluding terminated policies – 791,920). The share of E-policies in the total number of CMTPLI policies increased year-on-year from 36% to 37%, reaching 319,872 by August of this year (growth slowed from 22.4% to 14.1%).
In the first seven months of 2026, the volume of insurance premiums collected under existing policies reached AMD 22.6 billion ($61.7 million), while the volume of insurance claims exceeded AMD 15.1 billion ($41.3 million). Moreover, the volume of compensation paid out under simplified accident reporting (Europrotocol) significantly slowed in year-on-year growth, from 62.6% to 16%, amounting to AMD 2.5 billion ($6.9 million). Meanwhile, the average annual growth rate of a single payment slowed, from 31.6% to 6.7%, amounting to AMD 131,363 ($359, compared to $321 a year ago). Meanwhile, for total insurance claims, the average payment continued to grow at the same rate, accelerating slightly from 5% to 5.2%, amounting to AMD 282,687 ($772, compared to $700 a year ago).
According to the Bureau, REGO Insurance covers the largest number of vehicles with MTPL policies – 143,419 units (over 19% of the market). Incidentally, this insurance company's loss ratio for compulsory motor third-party liability insurance (OSAGO) increased year-on-year from 69% to 74%. The highest loss ratio for OSAGO insurance is recorded at INGO Insurance Company – 79% (compared to 75% a year ago), while the lowest is at Nairi Insurance Insurance Company – 61% (compared to 65% a year ago).
Nairi Insurance and REGO Insurance generate the largest volume of insurance premiums under existing MTPL policies, with premiums exceeding AMD 4.3-3.99 billion (23-18% of the total market volume). However, INGO and Nairi Insurance continue to lead in terms of compensation in this class, with premiums of AMD 2.8-2.6 billion (19-17% of the total). INGO and LIGA Insurance generate the largest payouts for simplified accident reporting (Europrotocol) cases, with premiums of 513.4 million and 475.5 million, respectively (20% and 19% of the total market volume). INGO continues to have the leading number of E-policies - 110,746 (35% of the total number of such contracts on the market), LIGA Insurance is in second place - 59,836 (19%), and Armenia Insurance is in third place - 54,690 (17%). Nairi Insurance maintains the lowest number of E-policies - 16,366 (5% 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 Nairi Insurance - 190,376 and 156,398, respectively (or 22% and 18% of the total number on the market). However, it's worth noting that Nairi Insurance, the leader in insurance premiums, also has a higher number of terminated contracts: 13,099 (with a payable or paid amount of AMD 188.4 million , slightly behind INGO, with 15,001 (with a payable or paid amount of AMD 199.98 million). Armenia Insurance and LIGA Insurance have the lowest number of terminated contracts: 8,134 and 11,003, respectively.
It's worth noting that the Armenian insurance market began liberalizing MTPL tariffs in April 2023, and the loss ratio for this class began to increase within a quarter. This trend continued until 2025, when, beginning in February, a significant increase in MTPL rates allowed insurance companies to significantly improve their efficiency, and the loss ratio declined. However, in 2026, specifically in February, the loss ratio resumed its upward trend, continuing until May, after which a decline was observed.
The Armenian Motor Insurers' Bureau, as part of amendments to the "General Conditions of MTPL" 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: Property damage has been increased to AM 2.5 million, up from the current AMD 1.8 million; Health damage has been increased to AMD 3.5 million, up from the current AMD 3.3 million. At the same time, the insured amounts for the total damage caused to all victims as a result of a single insurance event have been proportionally increased and set at AMD 25 million and AMD 35 million, respectively.
Recall, there are seven insurance companies operating in Armenia, six of which are licensed for compulsory motor third-party liability insurance (CMTPL). (The current exchange rate for the dram against the US dollar as of July 31, 2026, was 366.20 AMD/USD, compared to 383.82 AMD/USD as of July 31, 2025.)
