ALLIANZ-TIRIAC increases MTPL tariffs by 20% - 100%
 ALLIANZ-TIRIAC will increase the MTPL rates for all policies starting from January 1, 2010, by 20% up to 100%, according to the General Manager of the company, Cristian CONSTANTINESCU. Moreover, increases in MTPL tariffs will be applied by all insurers, an increase of about 30% being necessary to cover both recent exchange rate fluctuations, as well as a potential devaluation of the Romanian leu next year.
"Considering we are pursuing a very complex segmentation, there are cases in which increasing of the rates will reflect only the fluctuations of the exchange rate, in other cases, however, there will be substantial growths of the premiums", Cristian CONSTANTINESCU has said.
"This measure aims at stabilizing the portfolio, improving the technical result, we grow very high the prices for particular segments so that certain customers will be, this way, excluded from our portfolio", Aurel BADEA, Director of General Insurance Division of ALLIANZ-TIRIAC has explained.
Operational losses recorded on the MTPL class after nine months of activity, of RON 20 million, have halved the gross profit of the activity on general insurance, to RON 18 million.
The average value of claims recorded at the MTPL portfolio level increased significantly - to RON 5,100 for individuals and RON 6,500 for legal entities -, amid the increase in costs with spare parts, because of the leu devaluation, and with more expensive service labor hour in body shops.
Compensations for body injuries and moral damages have tripled
Also, the average claim has increased as a result of a substantial increase of the share of indemnisations owned for body injuries and moral claims.
Thus, the payment obligations of ALLIANZ-TIRIAC for body injuries and moral claims have tripled compared to the first nine months of last year, reaching a share of over 11% of the total damage recorded on the MTPL segment, compared to 5% as it was in 2008.
"Multiplying the value of claims owed by insurers for body injuries and moral claims is a phenomenon felt by all insurers that sell MTPL policies. We expect that it continues to manifest in the future and to represent one of the factors that will require the further increase of the tarrifs practiced by companies in this segment", CONSTANTINESCU said.
In 2008, compensations for body injuries accounted for 3.4% of the total, compared to 2.7% in 2007 and 1.4% in 2006, which confirms that the payment of such compensation is still in its infancy in our country. In Western Europe, the amount of claims paid by insurers for body injuries and moral claims is more than 50% of the total, as opposed to our market, where the payment obligations are related mostly to material damage.
The average claim for body injuries at ALLIANZ-TIRIAC raised in the first nine months of the year to RON 43,000 up from RON 26,000 in 2008, as the number of cases almost doubled, from 170 to 350.
"We even paid claims of RON 100,000 this year, and we know that there were cases in the market in which MTPL claims of even EUR 5 million were paid", Aurel BADEA added.
Starting next year, the limits of compensation will raise to EUR 500,000 for material damage and to EUR 2.5 million for body injuries, while in most European countries the minimum limit of compensation for body injuries is EUR 5 million.
Author: Andreea IONETE
on 10.11.2009
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