SIL Insurance: “Insiders’” Privileges in the Insurance Market

In recent years, the insurance company “SIL Insurance” has been one of the main beneficiaries of Armenia’s state insurance market. The company, owned by the family of Khachatur Sukiasyan, a Member of Parliament from the ruling “Civil Contract” party, has systematically received major contracts from state institutions, raising a number of questions among anti-corruption experts and the public.

A Half-Million-Dollar Contract Without a Tender

In 2023, the Ministry of Internal Affairs of Armenia signed a contract with SIL Insurance to insure around 2,000 police vehicles. The value of the contract was approximately $500,000. The transaction was carried out without a competitive procurement procedure, which drew criticism from experts.

The Ministry explained its decision by saying that it had conducted an inquiry among insurance companies and that SIL Insurance had offered the lowest price. However, experts from Transparency International and other organizations questioned the justification of such an approach.

“A single-source procurement itself is a corruption risk if we are not dealing with the issue of a natural monopoly. Throughout the world, single-source procurement is considered a corruption risk,” said Varuzhan Hoktanyan, Program Director of Transparency International’s Anti-Corruption Center.

Contradictions in the Authorities’ Explanations

The situation becomes more noteworthy because the contract included two types of insurance — mandatory MTPL and voluntary CASCO. While MTPL tariffs in Armenia are set and uniform for all companies, in the case of CASCO there is a competitive market.

An investigation by RFE/RL’s Armenian Service revealed serious contradictions. SIL Insurance stated that the police had approached them only for a CASCO proposal, while the price of MTPL had not been requested at all. Other insurance companies had also confirmed that they had received no inquiry from the police regarding MTPL insurance.

This circumstance casts doubt on the Ministry of Internal Affairs’ statement that SIL Insurance had offered a lower price compared with its competitors. Under uniform and fixed tariffs, such an “offer” was simply impossible.

Disciplinary Proceedings

The Armenian Motor Insurers’ Bureau initiated disciplinary proceedings against SIL Insurance in connection with the transaction concluded with the police. The regulatory body had confirmed that no company has the right to offer a price for MTPL that is lower than the established tariff.

Another circumstance is also noteworthy: even if the company is fined, the contract concluded with the Ministry of Internal Affairs continues to remain in force, because the law does not provide for its termination in such a case.

Continuation of the Successful Practice

In November 2025, SIL Insurance again won a tender, this time for the insurance of employees of Yerevan Municipality and structures under its jurisdiction. The package provides for insuring not only the employees but also their family members.

In February 2026, Yerevan Municipality concluded another contract with SIL Insurance, worth 14 million drams. This time as well, the transaction was carried out through a “single-source procurement” procedure.

The Authorities’ Response

Prime Minister Nikol Pashinyan, addressing the situation during a government session, called the story a “fake scandal” and demanded explanations. The Minister of Internal Affairs assured that all procedures had been carried out in accordance with the requirements of the law.

However, experts recall that it is precisely such cases of questionable public procurement that have become one of the reasons contributing to the deterioration of Armenia’s position in Transparency International’s Corruption Perceptions Index.

No less noteworthy is the expansion of the Sukiasyan family’s business interests since 2018, with this expansion occurring, not least, at the expense of profitable contracts concluded with the state.