The Situation of Motor Third Party Liability Insurance Market – MTPL at the end of the third trimester of 2014

During 2014, until the end of the third trimester, a number of 11 insurers have had the authorization to write MTPL insurance.

Subscribed gross premiums

The total amount of written premiums for MTPL, at the end of the third trimester of 2014 reached the value of 1.944.189.977 RON (EUR 440.719.494). Compared to the same period of 2013, when written premiums for MTPL insurance valued 1.756.811.038 RON (EUR 398.243.423), there was an 11% increase for the total market.

 

The number of insurance contracts concluded in the first three trimesters of 2014 was 5.371.183, an increase compared to the same period of 2013, of approximatively 4%.

 

 

Indicator

 

01.01-30.09.2011

 

 

01.01-30.09.2012

 

 

01.01-30.09.2013

 

 

01.01-30.09.2014

 

Gross written premiums

(million EUR)

 

329

 

344

 

398

 

441

 

At the entire market level, the average annualized premium, registered in the analyzed period was 515 RON (EUR 117), with a slight increase of 3% compared to the same period of 2013, when the value of the average premium was 502 RON (EUR 114).

 

 

Indicator

 

 

30.09.2011

 

     30.09.2012

 

      30.09.2013

 

      30.09.2014

Average annualized premium (EUR)

 

107

 

102

 

114

 

117

 

 

Claims and claims reserve

On the whole market, during the period of 01.01-30.09.2014, a number of 202.351 advised claims files has been registered, down with 10% compared to the same period of 2013, when 225.885 files have been advised.

The number of paid claims files during the same period decreased by 11%, from 228.962 files on 30.09.2013, to 202.694 cases on 30.09.2014. The value of paid claims fell slightly by 1% from 1.401.787.275 RON (EUR 317.764.718) on 30.09.2013 to 1.390.271.648 RON (EUR 315.154.293) on 30.09.2014.

The average claim paid overall market was in the amount of 6.859 RON (EUR 1.555), up with 12% compared to the same period of 2013, when the average claim paid was 6.122RON (EUR 1388).

The average paid claim value for material damages was 5.266 RON (EUR 1.194), remaining on the same level compared to the same period in 2013, respectively 5.239 RON (EUR 1.188). The value of the average claim paid for personal injury or death was 63.308RON (EUR 14.351) on 30.09.2014, up with 14% compared with the same period of 2013, when the average claim value was 55.630 RON (EUR 12.611).

 

Indicator

 

01.01-30.09.2011  

 

 

01.01-30.09.2012

 

 

01.01-30.09.2013

 

 

01.01-30.09.2014

 

 

Advised files

 

241.062

 

 

220.321

 

 

225.885

 

 

202.351

 

 

Paid claims

(million EUR)

 

270

 

294

 

318

 

315

 

 

Average paid claim

(million EUR)

 

1.175

 

1.330

 

1.388

 

1.555

 

The reported claims reserve constituted on 30.09.2014, in amount of 1.503.795.018 RON (EUR 340.888.384), an increase of 21% compared to the reserve established on 30.09.2013. Also, the incurred but not reported claims reserve (IBNR) grew by 9%, on 30.09.2014 amounted to 830.632.652 RON (EUR. 188.292.300).

 

Indicator

 

 

30.09.2011

 

     30.09.2012

 

      30.09.2013

 

      30.09.2014

Reported claims reserve (million EUR)

 

310

 

385

 

282

 

341

 

IBNR

 

 

155,7

 

177,8

 

172,2

 

188

 

Claims ratio, combined ratio

Based on the data presented previously the claims ratio has been determined. On 30.09.2014, on the overall market, the loss ratio was 84%.

Analyzing the expenses incurred in connection with MTPL insurance an average of 34% is established at market level. A significant share of expenditure is represented by the brokerage commissions; respectively on the overall market it represents 18.6% of gross written premiums.

Taking into account the expenses incurred, the combined ratio across the entire MTPL market on 30.09.2014 was 117%.

 

 

 

Indicator

 

 

30.09.2009-

 

30.09.2010-

 

30.09.2011-

 

30.09.2012-

 

 

30.09.2013-

 

 

30.09.2014

 

 

Claims ratio (%)

 

95

 

74

 

94

 

105

 

80

 

84

 

Combined ratio (%)

 

123

 

104

 

128

 

140

 

114

 

117

 

The analysis of recorded claims for personal injury and death

Between 01.01-30.09.2014 3.894 claim files have been advised for personal injury and death, down from the same period of 2013, when a number of 4.548 files has been advised.

The amount of paid claims for personal injuries and death, respectively 352.181.546 RON (EUR 79.834.417), increased by 40% compared to the same period of 2013. From the total claims paid for personal injuries and death, about 70% is represented by claims paid for non-material damages (moral damages).

The claims reserve advised for personal injuries and death was, on 30.09.2014, in amount of 626.950.052 RON (EUR 142.120.427), a slight decrease from the reported claims reserve filed on 30.09.2013.

Out of the total of advised claim reserves established for personal injury and death, about 62% are reserves for non-material damages (moral damages).

 

Indicator

 

 

30.09.2011

 

30.09.2012

 

30.09.2013

 

30.09.2014

 

Claims paid for injuries (million EUR)

 

 

38

 

 

56

 

 

57

 

 

80

 

Reported claims reserve for injuries

(million EUR)

 

 

 

147

 

 

 

220

 

 

 

143

 

 

 

142

 

Claims paid for personal injuries and death represent 25% of the total amount of claims paid and the amount of reported claims reserve established for personal injuries and death is 42% of the total reported claims reserve.

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