RUSSIA: MTPL paid claims increased by 5.6% in 2019, preliminary data show

28 January 2020 — Marina MAGNAVAL
At the end of 2019, Russian MTPL GWP decreased by 3.4% y-o-y to RUB 220.2 billion (~EUR 3.17 billion), while paid claims, on the contrary, grew by 5.6%, to RUB 150.1 billion (~EUR 2.16 billion), as preliminary data of the Russian Association of Motor Insurers (RAMI) show, ASN reports.

The average cost of MTPL policy decreased by 4.9% in 2019, while the average paid claim went up by 2.3%, Igor YURGENS, the President of RAMI, announced. The total number of MTPL contracts increased by 1.6%, to 40.61 million units, and the total number of claimed losses grew by 3.5%.

TOP-10 leaders in terms of MTPL contracts remained almost unchanged - 8 companies kept their positions: AlfaStrakhovanie, RESO-Garantia, ROSGOSSTRAKH (its MTPL market share increased from 8.6% to 10.4%), INGOSSTRAKH, VSK, SOGAZ (the only company in TOP-10, whose MTPL paid claims exceeded GWP), NSG-Rosenergo and ASKO-Insurance.

At the beginning of 2019, the first step of the MTPL reform was taken. The tariff corridor was expanded by 20%, both upside and downside. From April 1, 2019, changes in calculation of the bonus-malus coefficient entered into force.

"A stable market in 2020 is probably the main task for us. But by the end of this year it will be possible to switch to other things as well, by taking further steps towards individual tariffs, cancellation of some coefficients, increasing the limits - these things can be done at the end of the year, so that it all starts in 2021", said Evgeniy UFIMTSEV, Executive Director of RAMI.

According to Evgeniy UFIMSEV, many aspects will also depend on the development of the institution of financial ombudsman, which since June 1, 2019 is considering all disputes between clients and motor insurers.

*EUR 1 = RUB 69.3777 (01.01.2020)

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