Croatia: MTPL market's liberalization has brought a larger product diversification, believes the Competition Agency

Croatian passenger cars owners have benefitted from the MTPL market liberalization, as well as from the products diversification, has found a recent survey performed by the local Competition Agency. According to the survey's conclusions, the market is "competitive and well structured" and consumers currently have a better choice than in the past years.

One of the main changes in the MTPL pricing occurred on the corporate segment, as insurers have given up one of pricing criteria which was affecting road carriers domiciled in some of country's regions, such as Zagreb. Thus, instead of taking into account Croatia's segmentation in seven regions, insurers have decided to apply an uniform pricing policy for the entire territory of the country. As a result, carriers registered in the Zagreb area, for example, which previously were paying almost double MTPL tariffs as compared with other regions, have seen their insurance expenses decreasing significantly. The Competition Agency welcomed this change, considering that discriminating carriers according to their registration place was illogical since trucking companies operate within a national or EU market and not locally.

On the retails segment, introducing the criteria, such as age and personal experience of the driver, the car manufacturer and technical characteristics of the car has also resulted in larger differences in prices and more choice for customers, as insurers are differently weighting criteria taken into consideration.

The Croatian motor insurance market numbers 13 insurance providers, with a total of GWP of HRK 2.04 billion (EUR 272 million) in 2016, less 2.8% y-o-y. The MTPL insurance class accounts for 35% of the non-life portfolio and has seen in the recent years, following the tariffs liberalization in 2014, a continuos downsize trend.

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