SERBIA: MTPL prices have increased by an average of 22%

9 August 2022 — Marina MAGNAVAL
In the first week of August, insurance companies increased MTPL prices by an average of 22%. The main reason is the increase in the price of spare parts, caused by inflation at the global level. There is also an increase in the prices of transport services, damage assessments, as well as in the prices of working hours in service centers, the Association of Serbian Insurers wrote.

"The overall situation on the car market has an unfavorable effect on the operations of insurance companies. On the one hand, more and more sophisticated and expensive vehicles are produced, primarily electric ones, which are more susceptible to damage and repair of which is more expensive, while on the other hand, we have an evident jump in the price of used vehicles on the market, which are the benchmark for determining vehicle damage compensation", said Dusko JOVANOVIC, secretary general of the Association.

He added that the previous MTPL price change was done on July 1, 2014. Since then, inflation, measured by the Consumer Price Index, has been recorded at 20.68%. Dusko JOVANOVIC emphasized that due to a greater frequency of Serbian vehicles abroad, insurers are exposed to an increased risk of compensation for damages caused in other countries, according to the limits of the country where an accident occurred, which are many times higher than domestic criteria. There are also countries, such as France, Belgium, Luxembourg, the Scandinavian countries, and Great Britain, which have unlimited limits. Domestic insurance companies generally protect themselves against extreme claims with reinsurance contracts, which are becoming more and more expensive.

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