RUSSIA: MTPL average premium down by 7% in the regions generating about 90% of the segment's business

20 February 2019 — Marina MAGNAVAL
According to the Russian Association of Motor Insurers (RAMI), from January 1, 2019 to February 10, 2019 the average MTPL premium amount for cars dropped by 7% in 61 regions, generating in total almost 90% of all MTPL policies.

As the President of RAMI, Igor YURGENS explained "we again see how estimation, given by RAMI experts last year, comes true: after expansion of the tariff corridor by the Bank of Russia by 20% up and down, MTPL tariffs for the majority car owners get lower. We are sure that this trend will continue and will become even more evident for car owners after MTPL liberalization reform is fully completed".

Another indicative trend of the segment, based on the data, collected by RAMI, is that in 2018 the total number of MTPL court decisions decreased by 20% y-o-y. At that non-insurance payments (fines, penalties) amounted to 55% of the total court payments (vs 53% a year ago).

According to Igor YURGENS "transition to in-kind compensation and active position of the local authorities in certain regions have reduced the total number of insurance court cases. However, now the statistics is more clearly reflecting the general desire of "traffic lawyers" to get profit from insurance court cases. This is evidenced by both the increased amount of the average judicial fines and the fact that despite a significant decline of the court cases' number, the total amount of payments under court decisions remained almost unchanged", said the President of RAMI.

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