The Armenian insurance market is undergoing significant changes, with the MTPL (Mandatory Third Party Liability Insurance) loss ratio reaching 81.8% in 2024, a 10 percentage point increase compared to the previous year. This trend is particularly notable against the backdrop of tariff liberalization, which began in April 2023.
According to the Armenian Motor Insurers’ Bureau, 2024 witnessed a mixed dynamic: for the first time in years, the number of active MTPL policies showed negative growth (-0.7%), compared to an 11.7% increase the previous year. Meanwhile, insurance premiums rose by 9.3%, and claim payouts saw a remarkable 20.3% increase, as reported by FinPort.
As of early 2025, over 674,000 vehicles in Armenia are covered by MTPL policies, with the total number of active contracts exceeding 1.3 million. This discrepancy is attributed to the popularity of short-term quarterly policies among vehicle owners.
The digitalization of the insurance market has also seen significant progress: the share of electronic policies grew to 31%, amounting to 413,000 contracts. Total insurance premiums for 2024 reached 29.7 billion drams ($75 million), while claim payouts amounted to 21.9 billion drams ($55.1 million).
The leaders in the MTPL market remain LIGA Insurance, Nairi Insurance, and Sil Insurance, collectively controlling a substantial market share. Notably, LIGA Insurance reported the highest loss ratio at 90%.
Another noteworthy development is the growing popularity of the Europrotocol: payouts through this simplified procedure for processing traffic accidents increased by 39.1%, reaching 2.7 billion drams ($6.7 million). The average payout under the Europrotocol rose to 101,000 drams ($255), marking a 19.1% increase from the previous year.
