The motor third-part liability insurance represents the most important insurance line of business, both in the developed and the developing countries. The legal framework, premium and reserving based on actuarial projections, guarantee funds, information systems, and reinsurance techniques all are crucial for the development of a healthy MTPL insurance system.
Due to the sanctions imposed by the USA and the EU for Russian Federation, some of local insurance companies were affected. This happened especially for placing the property or Cargo risks belonging to companies, whose owners are already in the "black list".
In light of the recent political events in Ukraine, a very important question is the existence of the reinsurance market in Ukraine, in particular, the placement of Ukrainian reinsurance risks.
According to experts' opinion, the only member of the insurance process focusing on the development of needs perceived for an insurance service is the insurance broker, who is acting in the interest of its clients. Furthermore, the market's welfare of the broker depends on how professionally and qualitatively it will deliver its services to the customer.
In addition to the deductible or the number of covered risks, there are other factors - such as the high frequency of damages, the road infrastructure and the high level of the compensation requests - that influence the CASCO insurance premium. In the case of Romanian, Russian and Ukrainian car owners the prices are among the highest in the Central and Eastern Europe region, according to the latest analysis carried out by the XPRIMM Publications.
Although mandatory in all European countries, MTPL insurance registers major differences both in rates and coverage accross the CEE and CIS markets. Thus, if in countries such as Russia and the Republic of Moldova the MTPL price is a standard one, regulated through the local legislation, in the member states of the European Union the price liberalization transformed the MTPL into one of the main sore points of the insurance markets.
In the report of the international rating agency Standard & Poor's, the international reinsurance market in 2013 was characterized as a record of high level of capitalization, high profitability and growing importance of the reinsurance sector, which together reflect the strong performance of the sector over the past five years.