The new car's number is affecting the motor insurance claims ratio
In January 2008, the number of registered new cars raised up by 34.5%, to 29,495
cars from 21,931 cars in the same period of 2006, according to data provided
by ACEA - The European Association of Automobile Producers.
The dynamic of this figure only confirms the domination of the motor segment
within the insurance market. According to the estimations made by insurance companies,
the flame of the non-life insurance sector development remains motor insurance
segment.
"The market will continue to be dominated by motor insurance, which is
specific to the East Europe in general", Catalin STROE, Marketing and Sales
Director, ASIROM stated. This way, considering the low level of the population's
revenues, people tempt to insure the most probable risk.
Motor insurances continue to dominate the profile market, representing over 71%
of the non-life market after the first 9 months of 2007. Thus, from the total
of EUR 1.29 billion general insurance, written premiums on motor segment reached
EUR 921 million according to data released by Insurance Supervisory Commission.
In the first three quarter of 2007, the motor HULL class raised up with more
then 50%. This insurance product represents almost 35% from the total market.
This way, the Romanian insurance companies reported, on this class, an amount
of gross written premium of about EUR 565 million in nine months, while the unofficial
data indicates an amount of paid loses of EUR 128.56 million.
Considering the fact that motor insurance can be profitable only if some necessary
efficiency criteria are respected, the insurance companies have to do something
in order to eliminate the losses on this segment.
Some of the most on hand solution are the introduction of the deductible franchise,
the implementation of bonus-malus system and the usage of independent cost calculating
systems. Regarding the forecasts for this year, Bogdan STAN, CEO of ASITRANS
Euroins stated earlier this month: "In my opinion, for the first time an
insurance product, namely HULL, will exceed EUR 1 billion, in the situation of
EUR 2.7 billion for the entire insurance market".
"Bu this reason, we must treat this class very seriously and to stop blaming
others for the claims ratio accession. Thus, the insurers have to find common
solutions for reducing this ratio, as regards to loss liquidation modalities,
specialized evaluation soft wears and a unitary policy in relation with car body
repair shops", Bogdan STAN added.
In fact, over 80% of the compensations paid annually by the insurers on non-life
segment represent assumed obligations within motor insurance contracts. Considering
this percentage, the conclusion is that the non-life portfolio is the most expensive
from the administration point of view.
In this context, Media XPRIMM is organizing the 2nd Edition of The national Motor
Insurance Conference. The event will take place on Thursday, March 6th, 2008,
at 9:30 a.m., in the PARLIAMENT Palace, Nicolae IORGA Hall. The scientific frame
of the event will comprise MTPL tariffs, the franchise role in decelerating claims
ratio and the collaboration with car body repair shops.
For more detail and for registration click
here!
Author: Andreea IONETE
on 18.02.2008
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