RESO-Garantia continues to hold the lead in MTPL - the company's GWP in the segment reached RUB 28.9 billion (+5.7%), while paid claims increased to RUB 17.8 billion (+46.9%). In 2020, the insurer experienced a serious decline in paid claims due to a lockdown, while there was a significant increase in premiums. Also, unprofitability is seriously affected by the change in the cost of spare parts and modification of some settlement conditions in terms of assessing damages in 2020-2021, as RESO noted.
AlfaStrakhovanie maintained its second position in the segment with GWP worth RUB 26.1 billion (+13.6%). The insurer's paid claims reached RUB 15.5 billion (+9.1%). ROSGOSSTRAKH ranks third (GWP of RUB 22.3 billion, +18.9% / paid claims of RUB 13.8 billion, +16.6%).
The share of MTPL paid claims in premiums is growing - on average, over 9 months, MTPL insurers paid 64.7% of premiums collected in the same period (vs 62.3% in January-September 2020). According to the Central Bank's instructions on MTPL tariffs, 77% of the premium is allocated to ensure compensation for compulsory motor third party liability insurance. For an insurance company to break-even in MTPL, the loss ratio under the current tariffs should not exceed 77%. For 9 months of 2020, 10 companies paid more than 77% of their MTPL premiums, while in the last reporting period, 14 companies crossed this threshold.
Total GWP in Motor Hull for the reporting period reached almost RUB 148 billion, which is 20.2% more y-o-y. Paid claims increased by 14.3% to RUB 80.9 billion. The number of contracts amounted to 5.4 million units (vs 4.2 million a year earlier). At the same time, GWP of the top 20 leaders on the Motor Hull market reached RUB 144.5 billion, and their paid claims for the period exceeded RUB 51.1 billion.
"The shortage of new cars leads to an increase in the rollover share in the Motor Hull market, where, in principle, there are lower average premiums compared to new business tariffs. On the other hand, the continuing rise in prices for spare parts is exerting serious pressure on the market, which leads to an average increase in tariffs. Now, it is rather difficult to accurately predict the impact of these opposing factors in 2022. In the context of a shortage of new cars, many insurers pay attention to the segment of trade-in with dealers, which is growing, and, according to our estimates, will continue to increase in 2022," said Pavel NEFEDOV, Director of the Underwriting and Product Management Department of the SOGLASIE insurance company.
* 1 EUR = 84.8755 RUB (September 30th, 2021)
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