Russia: INGOSSTRAKH intends to reduce its MTPL market share
"The company's share is close to 10% and we are ready to keep the balance at around of 7%", explained Mikhail VOLKOV.
According to him, this decision was taken following the effects on the specialty market driven by ROSGOSSTRAKH actively reducing its share in MTPL Russian business. As its share has been redistributed between other players on the market, a large number of high loss clients have migrated to other insurers' portfolios, affecting their efficiency indicators. "If we correctly estimate, the average loss ratio is now of over 100%; on long-term no company will be able to work in such conditions".
He added that the most affected companies are those which are not part of the top five in terms of financial stability, thus, a number of players can leave the market.
Mikhail VOLKOV stated that losses recorded in MTPL insurance led to the decrease of the insurer's net profit.