Analysts predict increase in insurance fees due to the growth of its unprofitability


The average size of the loss in insurance without considering the cost of doing business for the last two years has increased from 65% to 78%, wrote on Tuesday the newspaper “Vedomosti” with reference to the Analytical study of the Russian credit rating Agency (ACRA).

According to analysts, in I quarter of 2017, if the activity avtoyuristov will not decrease, it can achieve 94% and the combined ratio (MCC) is 118%. In this case, according to analysts, the increase in tariffs is inevitable.

Among the reasons for the rising losses of this type of insurance, in addition to activity avtoyuristov, ACRE refers to the extension of increased in October and April 2014 payout limits on property and life, as well as the rising cost of parts and repairs due to the weakening of the ruble.

Analyst at ACRE Alexey Bredikhin told the newspaper that now CTP is not a source of profit for insurers. According to him, the MCC on policies sold in January – March, is already in different companies 101-112%. If earlier, the insurers could compensate losses on OSAGO due to sales by other types of insurance, with projected values of the CCG, it will be impossible, he said.

Representatives of the insurance market, interviewed by the publication, agree that the loss ratio in MTPL market average is already close to 100%. According to the head of Department of pricing and underwriting SG “URALSIB” Sergey Teplyakov, the main reason for the growth of loss – not only inflation, but also changes in the limits and common method of measuring damages. He believes that to keep the loss ratio at least on one level, with this speed of changes in the cost of spare parts need regular increase of tariffs.