This trend coincides with an acceleration in the annual growth of active insurance policies—from 8.1% to 10%—alongside a slight deceleration in the GWP growth (from 17.8% to 17.2%) and a significant rise in paid claims (from 8.3% to 18.1%).
Data from the Bureau of Motor Insurers of Armenia indicate that the loss ratio began to decline in May of this year, following an increase over the preceding four months. For context, throughout 2025, the loss ratio had previously fallen from 81.8% to 76.3%.
Experts note that the cost of MTPL is rising, which allows insurance companies to offset inflationary risks, driven by broader inflation and, specifically, increasing costs of spare parts. Furthermore, there is a noticeable trend wherein insurance companies charge higher premiums to "less loss-prone" drivers, thereby balancing out their overall statistical performance.
According to the Bureau, the number of vehicles covered by MTPL policies is showing moderate y-o-y growth, with the pace accelerating from 4.7% to 7%. In absolute terms, as of October 2026, there were 749,242 vehicles in the country covered by MTPL, while the total number of active policies slightly exceeded 1.1 million units.
In the first nine months of 2026, MTPL GWP reached AMD 29.4 billion (USD 81 million), while total paid claims in the segment exceeded AMD 20 billion (USD 55.1 million).
Source: ArmInfo.
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