In relative terms, GWP for MTPL insurance went up by over 18% y-o-y. Considering the number of issued policies went up by only 5.6%, it is obvious that the growth was mainly driven by the raising prices.
Losing two of its major players, known for their very competitive MTPL pricing, and with another two - EUROINS and CITY Insurance -, under special surveillance, the MTPL market saw a significant increase of the average premium level, especially for the corporate clients. Thus, the annual average premium value rose by 13.15%, reaching a five years peak, of RON 793/year (corporate clients - RON 1,729/year).
Efficiency ratios for the MTPL line have also improved, although they are still reflecting a disputable technical profitability. For the first time since many years, the MTPL line saw a combined ratio value closer to the 100% threshold, of 104.26%, while the loss ratio stood at 67.5%. However, it is for the end year results to confirm the positive trend, given the significant influence of IBNR reserves, which are usually estimated on annual basis.
Access www.xprimm.com and download the 1H2016 Romanian insurance market statistics.
|Read more about the Romanian insurance market evolution in 1H2016 in the forthcoming issue of XPRIMM Insurance Report 1H2016, to be released on October, 23rd, on the occasion of the Baden-Baden XPRIMM Reception (Kurhaus Casino, Runder Saal).|