In the first quarter of 2020, Russian MTPL GWP increased by 2.3% year-on-year, reaching RUB 47 billion (~EUR 0.55 billion*). MTPL paid claims increased as well by 3.9% y-o-y, to RUB 38.2 billion, ASN reports citing the data of Russian Association of Motor Insurers (RAMI) press service.

The average MTPL premium in the reporting period decreased by 1.1% y-o-y, while the average paid claim went up by 5.4%, the RAMI press service of the informed. Igor YURGENS, President of RAMI noted:

"A noticeable increase of the average paid claim is related, first of all, to the growth of the currency exchange rate and the subsequent increase of the cost of spare parts (...) We see that insurers, unlike other industries, during the current crisis continue to keep prices for the compulsory motor insurance at the pre-crisis level, despite obvious increase of the loss ratio. In order to maintain this positive trend for vehicle owners, it is necessary to urgently adopt amendments to the law on MTPL, implementing the second stage of the tariff individualization for compulsory motor insurance."

The total number of MTPL contracts concluded in 1Q2020 increased as well by 3.5% y-o-y, which, according to the RAMI president, is the result of the average premium decline. At the same time, the total number of claimed losses decreased by 11.1%, s well as the number of settled claims - by 1.5%. This decrease, as YURGENS explained, is associated with quarantine restrictions, which led to a decrease in traffic and thus to a decrease in the number of accidents.

According to the RAMI data, RESO-Garantia with GWP worth RUB 7 billion was the leading insurance company in the MTPL segment, AlfaStrakhovanie ranking 2^nd with a small gap (almost RUB 6.7 million) and ROSGOSSTRAKH the 3^rd with a GWP of about RUB 5.5 billion (+7.6% y-o-y).
*EUR 1 = RUB 85.7389 (30 March 2020, the Central Bank)