RUSSIA: Motor Hull GWP increased by 3.8% y-o-y in 2018

Motor Hull GWP increased by 3.8% (from RUB 162.5 billion to RUB 168.7 billion) in 2018, while paid claims remained at almost the same level (RUB 83.2 billion vs RUB 83.3 billion a year ago), as regulator's data show.

The average premium amount decreased by 13.7%, while total number of the contracts went up by 20.5%. The combined loss ratio demonstrates a steady 70-73%, which, according to the market experts, indicates good profitability for the segment.

As market representatives believe, the following growth factors are increasing solvency for the population: recovering sales of new cars, lending, reduction of tariffs, increasing share of discount more affordable products, limiting the list of covered risks, reported by ASN.

However, market experts assume that in 2019 the Motor Hull development can be adversely affected by the increasing interest rates and the rise of lending prices, as well as the increase of VAT to 20%, since this has already made the car prices go up by 2-10%. It is likely that Motor Hull in 2019 will remain at the level of 2018, according to a representative of MAKS company.

The TOP-3 segment leaders in terms of GWP in 2018 included INGOSSTRAKH (RUB 27.76 billion), RESO GARANTIA (RUB 26.25 billion) and AlfaStrakhovanie (RUB 18.54 billion).

*EUR 1 = RUB 79.4605 (31.12.2018)

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