RUSSIA: 1H2020 MTPL paid claims decreased by more than 6% y-o-y thanks to quarantine restrictions

28 July 2020 — Marina MAGNAVAL
In 1H2020, MTPL GWP decreased slightly y-o-y (-0.7% in local currency), to RUB 103.26 billion (~EUR 1.3 billion*). At the same time, thanks to restrictive measures during the pandemic, paid claims dropped by 6.2%, to RUB 69.58 billion, ASN reports based on the data of the Russian Association of Motor Insurers (RAMI).

Thanks to the quarantine measures, total number of reported claims decreased by 18.5%, and the number of settled claims - by 10.9%, explained Igor YURGENS, President of RAMI.

Total number of contracts concluded during the period decreased by 1.3%. However, in June there was already an increase, after most of the quarantine restrictions were lifted. "Now we see the deferred demand for MTPL, and dynamics of the concluded contracts is gradually flatting out," Igor YURGENS added.

The President of RAMI noted that on August 24 this year, amendments to the law on MTPL aimed at tariff individualization will come into force and due to that competition is getting more intensive - many insurers have reduced their average premiums.

According to 1H2020 results, RESO-Garantia is the leader in terms of MTPL GWP (about RUB 16.39 billion). TOP-5 MTPL insurers also include AlfaStrakhovanie, ROSGOSSTRAKH, INGOSSTRAKH and VSK.

* for the following exchange rate:
1 EUR = 78.9929 RUB (as of 1 July 2020)

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