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
100%
Wüstenrot poisťovňa, a. s.
90%
UNIQA poisťovňa, a. s.
80%
UNION Poisťovňa a.s.
70%
KOOPERATIVA poisťovňa, a.s. Vienna Insurance
Group
Komunálna poisťovňa, a. s., Vienna Insurance Group
60%
Groupama poisťovňa, a.s.
50%
Genertel poisťovňa a.s. pobočka zahraničnej
poisťovne
Generali Slovensko poisťovňa, a. s.
40%
30%
ČSOB Poisťovňa, a. s.
20%
AXA pojišťovna, a.s. pobočka zahraničnej poisťovne
10%
Allianz– Slovenská poisťovňa, a. s.
0%
2002
2003
2004
Source: Slovak Bureau
2005
2006
2007
2008
2009
2010
2011
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
Development of written premium (millions EUR)
500
400
300
200
100
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
M TPL
157.1 197.3 304.5 388.3 384.2 323.3 321.9 320.6 284.6 283.5 286.0
Other motor insurance 190.4 201.3 228.8 246.5 289.3 271.7 290.8 306.0 293.6 276.0 265.5
Source: NBS
Claims development (million EUR)
250
200
150
100
50
0
2006
2007
2008
2009
2010
2011
MTPL
121.107
137.819
159.083
162.822
159.997
162.225
Other motor
insurance
178.926
190.512
205.322
199.674
188.424
183.682
Source: NBS
Product ratios
Loss Ratio (MTPL)
Loss Ratio (Other Motor)
Combine Ratio (MTPL)
120%
Combine Ratio (Other Motor)
100%
80%
60%
40%
20%
0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Loss Ratio (MTPL)
32.26 66.67 63.34 42.07 39.39 50.13 43.90 58.67 55.73 54.50
Loss Ratio (Other
Motor)
70.98 72.12 63.17 46.17 75.20 67.59 69.91 67.98 65.58 65.75
%
%
%
%
%
%
%
%
%
%
Combine Ratio (MTPL) 65.04 88.19 82.77 64.66 64.81 77.05 69.98 86.37 84.54 83.16
Combine Ratio (Other
Motor)
Source: NBS
103.70 100.63 86.24 70.32 101.81 93.30 101.62 97.22 95.34 98.23
%
%
%
%
%
%
%
%
%
%
Average Loss and Premiums
MTPL
Other motor insurance
1 400.00
8.00%
1 600.00
35.00%
1 200.00
7.00%
1 400.00
30.00%
6.00%
1 200.00
5.00%
1 000.00
4.00%
800.00
3.00%
600.00
2.00%
400.00
200.00
1.00%
200.00
5.00%
.00
0.00%
.00
0.00%
1 000.00
800.00
600.00
400.00
1
Average Loss
Source: NBS
2
3
4
Average Premium
5
6
Loss Frequency
25.00%
20.00%
15.00%
10.00%
1
Average Loss
Source: NBS
2
3
4
5
Average Premium
6
Loss Frequency
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
3 000 000
7.00%
6.00%
2 500 000
5.00%
2 000 000
4.00%
1 500 000
3.00%
1 000 000
2.00%
500 000
1.00%
0
0.00%
2006
2007
2008
2009
2010
2011
Number of insured cars
Total number of cars subject to MTPL insurance
Number of uninsured cars
% of uninsured cars
Source: Slovak Bureau
Claims for uninsured cars
7
0.45
0.4
6
0.35
5
0.3
0.25
4
0.2
3
0.15
0.1
2
0.05
1
0
0
-0.05
2006
2007
2008
2009
Claims for uninsured cars in millions EUR
Source: Slovak Bureau
2010
Y-o-Y change
2011
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
Summary
Financial Crisis
Price War
Market
Concentration
×

Decrease of
premiums
×

Decrease of claim
fequency
×

Uninsured cars

×
THANK YOU
FOR YOUR ATTENTION
Júlia Čillíková
National Bank of Slovakia
Tel: 00421 2 5787 3300
Fax: 00421 2 5787 1118
e-mail: [email protected]