Payments CTP again falling for compensation "in kind"

31 October 2018

RAMI again detects a decrease in the average premium and average payment insurance

As the press service of the Information project "CTP: public examination of the" Russian Union of motor Insurers (RAMI), based on statistics for January–September 2018 recorded a continued decline in average payment and the average premium of the insurance. So, the average premium for the period decreased from ₽5806 to ₽5703 in comparison with the data for 2017, the average payout was equal ₽65 823, which is 15% lower than a year earlier.

The average premium in September amounted to ₽5868, which is 1.4% less than in the same period last year. Also reduction showed the average payout for September – this index amounted to ₽494 71 decreased by 7% compared to the size of the payment in September 2017.

Preliminary data for CTP indicate a reduction of 15% of the amount of damages claimed from 1.88 million to 1.60 million units, compared with same data for last year. A decline of 14% shows the number of settled losses from 1.84 million to 1.57 million.

In January–September of 2018, the volume of premiums for CTP amounted to ₽167,16 billion, virtually unchanged compared with data for the same period of 2017. The amount of payments on claims decreased by 27% from ₽141,8 billion to ₽103,56 billion.

President of the Russian Union of motor insurers (RAMI) Igor Yurgens announced that "a decrease in the average award due to two factors. First, the accumulated total "discount" of car owners in the system of bonus-Malus. Second, less noticeable in the short interval but very sensitive on long, triggered competition between insurers. During a sharp reduction in the market share of CTP from 40% to 9% of its former leader – the company "Rosgosstrakh", the average cost of the policy of obligatory "autocitizen" has decreased approximately on 10%".

Igor Yurgens also noted: "the Decline in both the number of losses and amount of payments, associated with the expansion of settlement in kind. Natural reimbursement greatly affects "avtoyuristov" opportunity to with the insurance companies extra money because of the court's "surcharge". Thus, according to the regulations, the period of loss settlement in this form of compensation at least twice as long than the payment of money (only available within 30 days). Because of this, such loss later into the reporting that is creating the impression of reducing the number of losses."