RUSSIA: The State Duma Committee recommended cancelling prohibition on reinsurance of MTPL risks

The State Duma Committee on Financial Market recommended a bill to cancel the prohibition on reinsurance of MTPL risks, as well as to include information about MTPL reinsurance contracts in the data transferred by insurers to the automated data system, reported ASN portal.

This recommendation is based, according to the Committee, on the significant increase of MTPL GWP since adoption of the Law on MTPL (in 2003 GWP amounted to RUB 26 billion and in 2016 it reached RUB 234 billion), the increase in average paid claim amount and insurer assets, as well as the concentration of MTPL insurance among the TOP-10 companies of the market. ARIA generally supports reinsurance of MTPL risks, as the President of ARIA, Igor YURGENS, said.

Prohibition of reinsurance in MTPL has been in force since July 1, 2014. According to RAMI, in 2014 99 insurers had MTPL licenses, then there were only 84 in 2015, 69 in 2016, 62 in 2017, and 53 today. The leaders in terms of MTPL GWP in 2017 were RESO-Garantia, ROSGOSSTRAKH, INGOSSTRAKH, VSK, and AlfaStrakhovanie.

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