LATVIA, 1Q2018: aggregate loss from mandatory MTPL 33 times lower y-o-y

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.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

LATVIA: 2018 MTPL results were positive for insurers

Data collected by the Latvian Motor Insurers' Bureau (LTAB) shows that the 9 MTPL insurers from Latvia earned EUR 3.61 million revenues from this business line. It is the first time in the past 10 years when Latvian MTPL insurers profited from this type of business line.

2019-02-21

SEB to merge its three Baltic life units

SEB - one of the largest life insurers in Baltic region announced is planning to merge its units in the Baltic States, "into one legal entity to further improve our operational efficiency and deliver improved customer services. The merger will not affect our services to the customers".

2018-11-08

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all