RUSSIA: for 11 months 2021 MTPL GWP increased by 7% and paid claims - by 5% y-o-y

10 January 2022 — Marina MAGNAVAL
GWP in MTPL for the period from January to November 2021 amounted to RUB 214.43 billion (~EUR 2.53 billion*), which is 7% more y-o-y. At that paid claims in the segment reached RUB 130.3 billion (+5%), writes ASN with reference to preliminary data of the Russian Association of Motor Insurers (RAMI).

In the first 11 months of 2021, 38.42 million MTPL contracts were concluded, which is 7% more y-o-y. The number of registered insured events amounted to 1.7 million (+12%), and the number of settled - 1.81 million (vs 1.64 million a year earlier).

"Despite inflation, which, according to conservative estimates, amounted to about 8% over the year, the average cost of MTPL remained the same as it was a year ago. That is, in real monetary terms, considering inflation, de facto decreased by at least 8%. This is a "victory" for the Bank of Russia, which launched the reform on individualization of MTPL tariffs three years ago. Competition that has developed between insurers for break-even customers has led to results that are not found in any other financial services market", said RAMI President Igor YURGENS.

At the end of December 2021, the Bank of Russia expanded the MTPL tariff corridor so that insurance companies could further reduce their tariffs for good drivers and increase the cost of insurance for those with an increased level of risk. For passenger cars of individuals expansion of the base rates both down and up will be 10%, for public transport (buses, trolleybuses, and trams) - 4.9%, for other categories of vehicles (in particular, taxis) - 30%. This new regulation comes into force on January 9, 2022.

* 1 EUR = 84.8234 RUB (01.12.2021)

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