Wednesday, February 16 2011 18:33
Rosgosstrakh-Armenia: The real loss ratio of motor third party liability insurance is already making one uneasy
ArmInfo. The loss ratio of the motor third party liability insurance (MTPL) calculated by the current statistics of road traffic accidents is already making one uneasy, Executive Director of Rosgosstrakh Armenia Gagik Grigoryan said at today's press conference. He said that the growing number of accidents may be connected with the unfavorable climatic conditions.
For his part, when commenting on possible changes in MTPL tariffs in Armenia, Vice President of Rosgosstrakh Armenia Rafael Minasbekyan said that the insurers have no necessary data to calculate the MTPL loss ratio yet. Meanwhile, it is the loss the ratio that stimulated insurance. "It is early now to speak of the tariffs: it is a big mistake to think that they are only increasing, the tariffs may decline as well. The normal regulator sees that the tariff is optimal. If the loss ratio goes off the scale, the tariff for the given type of insurance is also growing, and vice versa", he said.
When commenting on the efficiency of the Law "On MTPL", Minasbekyan said that this law is worked out more thoroughly and is more effective in Armenia than the one in Russia in 2002. However, he added that there are no perfect laws. Any law is modified and adjusted for a certain country, he said.
Earlier commenting on MTPL's possible operation at a loss, the executive director of Rosgosstrakh Armenia said that the variability of the given index is very big (from 65% to 85%, expenses on investigation of MTPL cases exclusive) due to the lack of certain data. According to the actuary calculations of the company, the MTPL tariffs should be at least by 30% higher than the current ones.
To recall, the Law on MTPL came into force on 1 Jan 2011. The Armenian insurers started selling MTPL policies on 18 Oct 2010. The Police of Armenia started fining the drivers for the lack of polices on January 10. The fine makes up 50 thsd AMD.
Fixing over-ambitious and unrealistic goals most dangerous - expert 
Idram: Infrastructure for Financial Institutions․ Idram for Everyone
External factors only hope or Armenia`s shoestring budget
Armenia`s economy and state competing for sooner collapse - ex-official 
Armenian broker Invia Investments to provide access to trading on ITS