RUSSIA: another nine insurers may leave MTPL segment this year

4 April 2018 — Marina MAGNAVAL
Russian insurers keep leaving the MTPL segment and another 9 companies are almost ready to do it this year, as estimated by the Russian National Rating agency (NRA).

Last year 11 insurers left the segment. If the MTPL tariff range is not expanded this year, the total number of insurers, working in the segment, may drop below 50, said the National Rating Agency's report. As of today, 59 companies are currently selling MTPL policies, according to the data of the Russian Association of Motor Insurers. In 2017 - 11 companies left the market, 6 of them surrendered voluntarily their MTPL licenses.

Based on 2017 result 16 insurers' MTPL claim repayment ratio exceeded 77%, said experts of NRA. For 9 insurance companies such claim repayment ratio poses risks to their financial stability due to big MTPL share in their portfolio (more than 30%). Among them - ROSGOSSTRAKH, ARMEETS, HOSKA, Sibirsky Dom Strakhovaniya, ANGARA, POVOLZHSKIY Insurance Alliance, TALISMAN, NADEZHDA and SERVICRESERVE. NRA experts believe that these companies may fail to fulfill their obligations.

For the first 2 months of 2018 MTPL segment dropped by 3% as compared to the same period in 2017. Claim payment amount decreased by 28%, based on the Russian Association of Motor Insurers' report. In terms of GWP - RESO-Garantia goes first with 16.9% share, next is AlfaStrakhovanie (12.7%), and third - ROSGOSSTRAKH (8.4%). In 2017 ROSGOSSTRAKH's share in MTPL market was 14% and RESO-Garanita had 15.8% share.

More details on the Russian insurance market can be found in the forthcoming issue of the specialized publication "INSURANCE Profile Russia FY2017", will be officially launched on April 10th.
The biannual bilingual publication (Russian and English) includes the FY2017 financial results of the insurance market, from GWP and mediated premiums to claims paid, but also aspects such as reinsurance statistical data, the insurance companies' GWP portfolios etc., as well as the status of the Russian reinsurance market and perspectives of reinsurance market alongside of the new partner - RNRC: statistical data and market opinions.

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