At the same time, during this period, payments for MTPL insurers that left the market increased to RUB 12.6 billion (+49%), ASN reports, citing the financial statements of the RAMI for FY2020.
At the end of 2020, funds on deposit accounts of the RAMI amounted to RUB 9.4 billion, which is 32.8% less y-o-y. In 2020, RUB 12.6 billion was spent on compensation payments from the reserve of guarantees and the reserve of current compensation payments, which is 24.1% less than a year before.
As of now, MTPL insurers make contributions in the total amount of 3% from their compulsory insurance premiums to the RAMI funds (guarantee fund and fund of current compensation payments). According to the Director of insurance ratings of the National Rating Agency, Tatiana NIKITINA, the bulk of MTPL compensation payments in the reporting period usually falls on companies whose licenses were revoked in previous years and, since in 2019 there were 6 such insurers, and in 2018 - 9, this led to a reduction in the balance of undisbursed allocated funds to the minimum value for the last 8 years. In 2020, a license of only one MTPL insurer, NSG-Rosenergo, was revoked - the volume of the company's obligations was estimated by the RAMI at RUB 6.2 billion.
Alexey BREDIKHIN, Director of the ACRA Financial Institutions Ratings Group, believes that the decrease in the amount of allocated funds, used to finance the main activities of the RAMI, by more than 40% in two years is significant. "If the dynamics persists, within two years the Association may need additional funding from the participants or third parties. The increased regulatory requirements for the capital of insurers from the Central Bank may result in the exit from the market of some companies, including RAMI members. We expect that in the event of a negative scenario in the MTPL market, the remaining insurers may start a cycle of tariff increases. This will lead to a corresponding increase in contributions to the RAMI funds even without changing the contribution rate. In general, we negatively assess the dynamics of the RAMI's allocated funds, but an increase in the contribution rate is still unlikely", he explained.
* at the following exchange rate:
1 EUR = 90.6824 RUB (December 31st, 2020)