"This result is mainly due to MTPL price changes in the previous years, as well as the high efficiency in insurer activity, and the reduction in their technical expenses," explained Janis ABASINS, Chairman of the Board of LTAB.
The amount of paid claims has risen as well in this period. Last year, for example, around EUR 57 million was paid in MTPL indemnities, which is also the highest value recorded since the introduction of the MTPL "OCTA" system in 1997. The average MTPL indemnity was EUR 1,182.
It is important to note that one of the causes for this increase in claims levels could be the increasing average value of the claims related to bodily injuries. Just like other EU countries, Latvia has also increased the limits of this type of indemnity. "If ten years ago, the insurance compensation for the damage caused to other vehicles was more than 90% by the end of the year, now the vehicle damage indemnities dropped to 73% from total," commented ABASIN.