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Average payment under compulsory motor TPL policies grew in January - September regardless of decrease in the average premium


Average payment under compulsory motor TPL policies has grown by 17% in January - September 2017 and has amounted to 77.253 thousand rubles, and the average premium has decreased by 3% up to 5.814 thousand rubles. It is confirmed by preliminary data of the compulsory third party liability insurance of vehicle owners based on the results of January - September 2017 prepared by Russian Association of Motor Insurers (RAMI).

The average payment in January - September 2016 amounted to 66.132 thousand rubles, average premium  – to 6.015 thousand rubles.

The average payment in September 2017 has grown by 1% in comparison with the similar period of the previous year and has amounted to 76.912 thousand rubles, the average premium has decreased by 1% up to 6.018 thousand rubles.

“The compulsory motor TPL insurance remains the most problematic segment of the insurance market. It is particularly well observed in the gap between the average payment which has increased significantly and the average premium which continues falling”, - RAMI President Igor Yurgens said.

He noted that the developing e-sales of compulsory motor TPL policies (obligatory for all motor TPL players since 2017) brings to the insurers cheaper policies with high indemnity payments. “These sales have embraced customers from regions with unreasonably low regional factors applicable to the tariffs, where the insurers did not want to come. The e-policies are also preferred by owners of cheap and economy vehicles who are also not so welcomed by the insurers. On the other hand, the remote sales allow for freer price manipulations of customers due to presentation of inaccurate data to the insurers”, - I.Yurgens said.

In January - September 2017 the accrued premiums under compulsory motor TPL insurance have amounted to 168.2 bln rubles showing a 4% reduction in comparison with the similar period of the previous year. The amount of indemnity payments has increased by 22% up to 141.8 bln rubles.

“The crisis on the market of compulsory motor TPL insurance has been developing with particular strength in the last 1.5 years. The disbalance is created due to inflexible tariff policy, therefore neither the insurance community, nor the regulatory authorities have any doubt on the need to go on the way of tariff liberalization. We expect that our insurance market will move in this direction”, - the insurance association president continued.

He also added that RAMI has applied to the Bank of Russia and the RF Government with a proposal to impose a moratorium on amendment of the law of the compulsory motor TPL insurance. “A package of amendments is currently on the agenda, which shall affect the tariffs for compulsory motor TPL insurance and not to the higher figures. For example the State Duma is reviewing a package of amendments under the European Accident Statement which introduces material modifications into this system, changes the basic principles of interaction of insurers with the STSI and other services. Because of the variety of initiatives, the insurance community does not understand, how to develop onward and what means to use in such tight timeline. It is for sure that the changes are necessary, but the resources for their implementation are required as well”, - RAMI President said.

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