MTPL Insurance Market in Macedonia and the Respective Regulation Klime Poposki MTPL Insurance Market in Macedonia and the Respective Regulation 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 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 16.04.2017

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

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; 16.04.2017

15 4 11 9 21 Insurance market in Macedonia Insurance Undertakings Life Insurance Undertakings 11 Non-life Insurance Undertakings 9 Insurance agencies 21 Insurance brokerage companies 683 Insurance agents 16.04.2017

Structure of the Gross Written Premium 16.04.2017

МI Casco BI GC Motor Insurance Motor insurance Motor third-party liability insurance MTPL Domestic motor third-party liability insurance DMTPL Green card GC Border Insurance BI Other 16.04.2017

(share of MI in the total nonlife insurance) Gross Written Premium (share of MI in the total nonlife insurance) Share of motor insurance in the total nonlife premium 100 Share of the respective risk in the total motor insurance premium 16.04.2017

Gross written premiums – relative change, MI m EUR Europe Macedonia

Claims ratio, MI

Gross written premium and Number of contracts, MTPL

Share of the MTPL premium in the total portfolio 2011 Колку е поголемо пазарното учество на компанијата толку е помало учеството на MTPL во нејзиното вкупно портфолио.

Share of company’s MTPL premium in the total MTPL premium

Average GWP development, DMTPL EUR

Channel distribution, MTPL

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

The average increase of the accidents with injured is 11% 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%

Comparison between the growth of accidents and the number of accidents reported (MTPL) Во 2011 година покрај ново пријавените штети вклучени се и повторно пријавените штети Во бројот на настанати штети не се вклучени штетите од Европскиот извештај

Indexes CMI индексот претставува индекс кој го објавува Фондот на здравство на РМ и значењето е следното: Колку е поголем CMI индексот, толку е поголем бројот на услуги со високи трошоци. Следствено, со повеќе реализирани услуги со високи цени, здраствените установи добиваат повеќе средства по пациент. Значи, иако CMI индексот не претставува класичен индикатор за инфлацијата на цените на здравствените услуги, сепак индицира на некакво зголемување на истите.

Development of country’s minimum limits

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….

Claims paid, MTPL

Claims settlement pattern, MTPL Претставува показател за Динамиката на решавање на штети, и се добива како учество на бројот на решени штети (ликвидирани +одбиени) во вкупниот број на штети кои биле нерешени на почетокот на годината и бројот на пријавени штети во текот на годината.

The development of claims paid and reserves, MTPL

MTPL ratios Согласно новиот Контен план, почнувајќи од 2011 година, исплатените износи по основ на неосигурени и непознати возила, се составен дел на трошоците на друштвото, за разлика од претходно кога беа составен дел од Бруто исплатените штети. Следствено на пример во 2010 година овие износи го зголемувале коефициентот на штети, а во 2011 коефициентот на трошоци

MTPL combined ratio

Claims ratio, MTPL Avg Колку е поголемо учеството на MTPL во вкупното портфолио, толку е помал коефициентот на штети. Или, согласно графиконот од претходно, поголемите компании има поголем коефициент на штети и обратно

Technical provisions, MTPL

Claims in court procedure, MTPL

Uninsured and unknown vehicles

Complaints, MTPL

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