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Pros and cons for the MTPL tariffs liberalization in the challenging environment of a soft pricing and highly compet

Mr. Klime Poposki. Pros and cons for the MTPL tariffs liberalization in the challenging environment of a soft pricing and highly competitive market . The International Insurance Forum, IIF 2014 April 6-7 2014, Istanbul, Turkey. Republic of Macedonia. MTPL market in Non EU SEE countries .

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Pros and cons for the MTPL tariffs liberalization in the challenging environment of a soft pricing and highly compet

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  1. Mr. Klime Poposki Pros and cons for the MTPL tariffs liberalization in the challenging environment of a soft pricing and highly competitive market The International Insurance Forum, IIF 2014 April 6-7 2014, Istanbul, Turkey Republic of Macedonia

  2. MTPL market in Non EU SEE countries • Macedonia • Serbia • Montenegro • Bosnia and Herzegovina • Kosovo • Albania

  3. MTPL market in Macedonia

  4. MTPL market in Montenegro

  5. MTPL market in BiH

  6. MTPL market in Albania

  7. MTPL market in Serbia

  8. Major challenges of the MTPL insurance market

  9. MTPL premium tariff system • Nine main tariff groups: • (i) Passenger vehicles, • (ii) Goods vehicles; • (iii) Buses, • (iv) Towing vehicles, • (v) Special vehicles, • (vi) Motorcycles, • (vii) Trailers, • (viii) vehicles with foreign registration, and • (ix) Operating vehicles. • Four age groups for vehicle owners; • Type of vehicle use (e.g. taxi, rent-a-car, transportation of hazardous goods, etc.); • Claims history: a bonus-malus system comprising eighteen classes; • Period of coverage: normally one year. Less than one year periods can apply to specific conditions; • Limits: Minimum country limits as set by the Law; • Vehicle fleets.

  10. Is the Market ready to liberalize NOW? Given the current stage of MTPL market development: Immediate and unprepared liberalization is likely to lead to market instability, reduced claims paying capacity and profitability and may have a negative social and economic impact. 10 Motor Insurance Conference

  11. Goal of the liberalization of MTPL tariff • MTPL tariffs liberalization Allowing insurers to price MTPL insurance coverage based on the underlying risk characteristics of local drivers and their vehicles rather than setting premium rates by administrative fiat Bringing the Macedonian insurance market in compliance with the EU Directive

  12. Roadmap for MTPL tariff liberalization Proper information and DATA processing

  13. Main phases of MTPL market liberalization

  14. Statutory requirements for Green Card Reinsurance

  15. 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 Thank you!

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