Latvian insurers' aggregate loss from mandatory MTPL insurance was EUR 120,000 in 1Q2018, down from EUR 4.05 million in the same period last year, reports LETA, according to information released by the Motor Insurers' Bureau of Latvia (LTAB).
Insurance companies wrote in 1Q a total of EUR 133.89 million in GWP in Latvia, 21.3% up y-o-y, while the paid claims grew at a much slower pace - by 5% to EUR 74.42 million, according to the Latvian Insurers Association (LAA). The highest premiums growth was recorded for the MTPL class, up by 72.4%, while the paid claims for the same line of business rose by 19.4%.
LTAB Chairman Janis ABASINS said that despite a significant increase in indemnities paid in mandatory MTPL insurance, as well as inflation and other factors, this was the smallest first-quarter loss from mandatory MTPL insurance recorded in recent years. "The first-quarter loss of this year was the smallest since 2009 when MTPL insurers were last seen operating without losses. To a great extent this is thanks to a hike of insurance premiums, which has allowed the insurers to cover not only the increased claims costs but also the price hikes caused by inflation," ABASINS said.
Although in comparison with the first quarter of 2017 the number of road accident claims dropped by nearly 10% in the first three months of this year, the total value of claims grew by more than 10%, while the average indemnity rose from EUR 762 in the first quarter of 2017 to EUR 830 in the first quarter of this year. "We see that the technical expenses of insurers' operations are also decreasing, which indicates that the MTPL industry becomes more efficient. If we do not experience rapid inflation growth or other unexpected risks, there is reason to hope that the losses will not increase significantly during this year," ABASINS predicted.
In Latvia, mandatory MTPL insurance is provided by ten non-life insurance companies.