Payments for compulsory MTPL motor insurance in January 2017 in the market as a whole for the first time exceeded collected premiums, reported the Russian Union of Motor Insurers (RUA). Insurers collected 14.053 billion rubles during the month. bonuses, and payments reached 14.321 billion rubles. According to RSA, this is another sign of a worsening systemic crisis in the segment.

“Insurance companies confirm the unprofitability of this type of business. The combined loss ratio, which takes into account not only the amount of premiums collected and payments made, but also reserves, has long exceeded 100%,” explained RSA Chairman Igor Yurgens.

The amount of payments for insured events in January 2017 increased by 77% (year-on-year), and premiums - by only 6%. The average payment in MTPL increased by 23% to 71,347 rubles, and the average premium decreased by 2% to 6,047 rubles, RSA notes.

Vedomosti is awaiting a comment from the Central Bank.

According to Yurgens, the increase in payments is due to the delayed effect of increasing limits on compulsory motor liability insurance in 2014 and the activities of insurance fraudsters. “These people artificially inflate the size of payments, taking advantage of imperfect legislation. Thus, they withdraw huge sums from the market, which end up in their pockets and do not go to policyholders,” he noted. The decrease in the average premium is due to an increase in the number of drivers with a reducing “bonus-malus” coefficient while maintaining compulsory motor liability insurance tariffs. “In 2016, the number of such drivers increased by 2.1 million people; at the end of 2016, 78% of motorists had a discount,” added the president of the union.

According to RSA, in 2016, payments under compulsory motor liability insurance exceeded premiums for 16 out of 85 insurers, including Rosgosstrakh, and the increase in the average payment was the maximum for the entire period of validity of the auto insurance policy. At the same time, the ratio of the amount of payments to the collected premium exceeded 0.7. Insurers hope for the law coming into force on the priority of repairs over monetary compensation .

At the same time, RSA records an increase in the number of concluded MTPL agreements by 8%. “RSA associates the increase in the number of concluded agreements with the launch of a large-scale project to ensure the availability of motor vehicle insurance - mandatory sales of electronic compulsory motor liability insurance,” noted Yurgens.

According to him, insurance companies have sold more electronic MTPL policies since the beginning of 2017 than in the entire 2016. From January 1 to February 21 inclusive, more than 355,000 motor vehicle insurance contracts were concluded online (in 2016 – 330,000). The most policies were sold in toxic regions: the Krasnodar Territory (10% of all online sales), as well as the Volgograd, Rostov and Sverdlovsk regions. Moscow follows them. Almost a third of e-MTPL have been sold in these five regions since the beginning of the year.

Payments under compulsory motor liability insurance exceeded fees