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Development of MTPL insurance in Slovakia. Júlia Čillíková The International Insurance Forum – IIF2012 Istanbul, Pera Palace Hotel March 4th-5th, 2012. Contents. History of MTPL Market Concentration Statistics Uninsured Cars. History of MTPL.
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Development of MTPL insurance in Slovakia Júlia Čillíková The International Insurance Forum – IIF2012 Istanbul, Pera Palace Hotel March 4th-5th, 2012
Contents • History of MTPL • Market Concentration • Statistics • Uninsured Cars
History of MTPL • 2001 demonopolization (Act No. 381/2001 ...) • New insurance undertakings (8 undertakings) • New opportunities • Lack of data, no historical data – risk due to long tail business • Deficit from statutory insurance – special technical provision • 2005 Liberalization of premium • Premium should be calculated on the basis of actuarial methods so that the amount will ensure the fulfillment of all liabilities of the insurance company.
Development of Market Concentration Source: Slovak Bureau
Development of Market Concentration • Market Concentration were influenced by: • Demonopolization • New players • Cross border insurers • On-line selling of insurance • Market coverage • For Top 3 insurers has decreased from 81.3% in 2006 to 71.5% in 2011 • For Top 5 insurers has decreased from 91.6% in 2006 to 84.8% in 2011 • Financial Crisis had no significant influence on market Concentration
Average Loss and Premiums Source: NBS Source: NBS
Trends in motor business • Motor business is influenced by price competition • Competition pressure on premiums • In 2005 were introduced dumping prices by one insurance undertaking • Pressure on claims decreasing • No significant influence of financial crisis
Number of uninsured cars Source: Slovak Bureau
Claims for uninsured cars Source: Slovak Bureau
Uninsured cars – possible influence of financial crisis • The number of uninsured vehicles is growing • The cost of recovery of claims paid for uninsured are rising • roughly 70% of the recoveries in the trial until by 2008 it was 40% • Even owners of uninsured cars who recognize debt and commit to repay it in installments cease to pay due to financial crisis • Claims for the uninsured cars are increasing
Other problems of MTPL business • Bonus – Malus system • Bonuses are increasing • Non Malus system • Prices are continuously decreasing • Windscreen losses are increasing • Unfair sanction system for uninsured cars • sanctions are lower than premium and receivable of state budget
THANK YOU FOR YOUR ATTENTION • Júlia Čillíková • National Bank of Slovakia • Tel: 00421 2 5787 3300 • Fax: 00421 2 5787 1118 • e-mail: julia.cillikova@nbs.sk