MTPL Insurance Market in Macedonia
and the Respective Regulation
Klime Poposki
FOURTH INTERNATIONAL INSURANCE CONFERENCE
„Cumpulsory motor third-party liability insurance and
the Guarantee fund”
23-25 October 2012, OHRID hotel-Metropol
Structure of the presentation
1.
2.
3.
4.
Insurance legislation in Macedonia
Insurance market - overview
Motor insurance - overview
MTPL







Gross written premium (development, share, ….)
Channel distribution
Accidents and claims
Claims paid and reserves indicators
Expenses
Uninsured vehicles
Complaints
Source:
 ISA
National Insurance bureau
Ministry of interior in RM
MTPL Market Liberalization Project in Macedonia, World Bank
Inception Report, May 2012
Axco Global Statistics/Industry Associations and Regulatory Bodies
CEA Statistics N°38
The European Motor Insurance Market,February 2010
08.04.2015
2
Insurance Legislation in Macedonia

Law on Insurance Supervision;
 Law on Compulsory Insurance in Traffic;
 Rulebooks:
•
•
•
•
•
•
•
Rulebook on chart of accounts for insurance and reinsurance undertakings;
Rulebook on the form and the content of the balance schemes and detailed content of the Annual
reports of the insurance and/or reinsurance undertakings;
Rulebook on the statistical insurance standards of the insurance and/or reinsurance undertakings;
Rulebook on minimum standards for calculation of technical provisions;
Rulebook on calculation of the required level of solvency margin;
Rulebook on types and description of items for calculation of the capital of the insurance and/or
reinsurance undertakings;
Rulebook on valuation of balance sheet’s items
…
 Other Laws that complement the Insurance legislation
• Law on Contracts and Torts
• Company Law
3
Insurance Legislation in Macedonia
Law on Compulsory Insurance in Traffic:
 The establishment and the role of National Insurance Bureau;
• Establishment of the Guarantee Fund and maintenance of its minimum amount which is
•
determined by this Law
Printing of the Green Card form and allowing the insurance companies to issue GC
 Establishment of the MTPL Commission;


MTPL Tariffs
Minimum and maximum rate of technical premium;
 Minimum sums insured;
08.04.2015
4
Insurance market in Macedonia
15
Insurance Undertakings
4
11
Life Insurance Undertakings
Non-life Insurance Undertakings
9
21
Insurance agencies
Insurance brokerage companies
683
Insurance agents
08.04.2015
5
Structure of the Gross Written Premium
08.04.2015
6
Motor Insurance
Motor insurance
МI
Motor third-party liability insurance
Casco
MTPL
Domestic motor thirdparty liability insurance
DMTPL
Border Insurance
BI
Green card
GC
Other
08.04.2015
7
Gross Written Premium
(share of MI in the total nonlife insurance)
100
Share of motor insurance in
the total nonlife premium
Share of the respective
risk in the total motor
insurance premium
08.04.2015
8
Gross written premiums – relative change, MI
m EUR
Europe
m EUR
Macedonia
70
60
50
40
30
20
10
0
19%
11.4%
12.6%
11.2%
10.8%
5.7%
6%
52
62
65
2006
2007
2008
Motor insurance premium
Relative change of the number of contracts
7%
-9%
59
2009
5%
63
66
2010
2011
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
Relative change of the gross written premium
9
Claims ratio, MI
Slovenia
Macedonia
Bulgaria
Croatia
Albania
2008
67,3%
60,5%
46,8%
70,5%
27,2%
2009
70,8%
61,5%
56,9%
62,5%
31,6%
2010
65,4%
58,1%
57,6%
56,0%
39,8%
2011
62,1%
57,4%
57,3%
49,8%
39,3%
10
Gross written premium and Number of contracts, MTPL
11
Share of the MTPL premium in the total portfolio
2011
12
Share of company’s MTPL premium in the total MTPL premium
13
Average GWP development, DMTPL
EUR
Change
DMTPL
Cars
Trucks
Buses
Total
20072Q 2012
-25,16%
-27,76%
-28,74%
-25,07%
Change
20092Q 2012
-4,88%
-8,68%
-7,24%
-8,11%
DMTPL 2009 - 2010 2010 - 2011
Cars
Trucks
Buses
Total
-3,65%
-4,31%
-7,31%
-5,19%
0,47%
-5,52%
0,44%
-1,28%
14
Channel distribution, MTPL
Insurance brokerage companies
Insurance agencies
MTPL commisson
(weighted average)
12,7%
11,4%
15
Key factors influencing claims
 Claims frequency
 Road safety
 Traffic conditions
 Age and driving experience
 Claim costs





Vehicle repair and spare part prices
Medical care prices
Personal injuries claims compensation
Fraud
Legal expenses costs
 Sum insured
16
Accidents
The average increase of the number of
accidents in the last 5 years is 10,47%
The average increase of the accidents
with injured is 11%
17
Comparison between the growth of accidents and the
number of accidents reported (MTPL)
18
Indexes
19
Development of country’s minimum limits
EUR
Prior 2010
1-Jan-10
1-Jan-11
1-Jan-12
Change
Personal injury
Buses and trucks
Other vehicles
Vehicles carrying dangerous goods
200.000
100.000
300.000
300.000
150.000
450.000
450.000
225.000
675.000
675.000
337.500
1.012.500
238%
238%
238%
100.000
50.000
150.000
150.000
75.000
225.000
225.000
112.500
337.500
337.500
168.750
506.250
238%
238%
238%
Material damage
Buses and trucks
Other vehicles
Vehicles carrying dangerous goods
20
Brief summary
So far, since 2008 …
- Minimum limits
(by approx. 238%)
- Number of contracts concluded
(by approx. 31%)
- Average premium per contract for DMTPL
(by approx. 25%)
- Operational costs and inflation
however….
21
Claims paid, MTPL
2008-2011
Change
-12,32%
22
Claims settlement pattern, MTPL
23
The development of claims paid and reserves, MTPL
Change
2008-2011
Claims paid
-12,32%
Claims reserves
29,68%
24
MTPL ratios
80%
70%
58.3%
59.1%
58.5%
60%
53.3%
54.8%
50%
49.1%
40%
30%
20%
30.2%
30.2%
2007
2008
39.6%
42.0%
2009
2010
10%
0%
Claims ratio (MTPL)
2011
Cost ratio (MTPL)
25
MTPL combined ratio
110.0%
105.0%
103.9%
100.0%
95.0%
98.1%
95.3%
90.0%
85.0%
88.5%
89.3%
80.0%
2007
2008
2009
2010
2011
Combined ratio (MTPL)
26
Claims ratio, MTPL
Avg
27
Technical provisions, MTPL
28
Claims in court procedure, MTPL
Triglav
Share of the claims
rejected in the total
number of claims settled
17,1%
Ins.Policy
19,4%
Uniqa
26,8%
Sava
5,0%
Evroins
22,8%
Albsig
31,0%
Winner
10,4%
Eurolink
QBE
21,8% 13,0%
Croatia n.
Insig
3,2% 14,5%
29
Uninsured and unknown vehicles
2009
Number of claims reported to NIBM
Number of claims accepted by NIBM
Total number of claims reported MTPL
Share
Claims paid from the GF
Claims paid MTPL
Share
2010
2011
2Q 2012
878
733
21.824
3,25%
765
584
23.721
2,40%
950
720
26.898
2,61%
224
82
12509
0,65%
1.139.242
27.578.992
4,13%
1.059.658
24.077.935
4,40%
966.861
24.362.179
3,97%
96.696
11.155.024
0,87%
30
Complaints, MTPL
(01.01.2011 - 30.09.2012)
Complaint Postively
s reported settled
Class of insurance
MTPL
MTPL, uninsured vehicles
MTPL TOTAL
Other
TOTAL
Share
Without
In
Rejected grounds
procedure
for action
European accident
statement
41
20
17
4
Police statemnets
16
10
5
1
30
17
47
64%
2
24
18
42
57%
1
6
16
22
27%
3
60
53
113
53%
2
2
2
4
50%
31
Thank you for your attention
Klime Poposki
The President of the Council of Experts,
Insurance Supervision Agency of the Republic of Macedonia
Email: klime.poposki@aso.mk
www.aso.mk