Adrian MARIN, UNSAR President: I hope that the reference tariffs for MTPL will not lead to a new form of capping

23 May 2017 — Vlad BOLDIJAR
"2016 was a difficult year for the Romanian insurance market. It was an year marked by the implementation of Solvency II - that brought strict demands regarding the solvability capital, regulation and quality; an year marked by the ASTRA and CARPATICA bankruptcies, two companies with more than 50% of the MTPL market and over 15% market share; an year with transporters' protests that put pressure on the MTPL pricings - resulting in the capping of the MTPL prices and, since May 2017, a new law which includes reference tariffs for MTPL policies, that, I hope, will not lead to a new form of capping", stated Adrian MARIN, UNSAR President, at FIAR 2017.

Regarding the MTPL law, UNSAR's President mentioned some negative aspects:
  • Limitation of administrative and sales costs, including insurance companies' taxes, to 25%.
  • The way the compensation for damaged cars repairing will be made may lead to an uncontrollable growth of paid damages.
  • The reference tariffs for the MTPL policies, provided by the law, to not lead, with the help of the secondary legislation, to a new form of MTPL pricings capping.
As positive aspects, Adrian MARIN mentioned:
  • The Bodily Injuries table system for the regulation of compensations for moral damages associated to bodily injuries.
  • The telematics systems - the measure that can help the accountability of the drivers.

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