The Russian Association of Motor Insurers Annual Report 2009

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The Russian Association of Motor Insurers Annual Report 2009 THE RUSSIAN ASSOCIATION OF MOTOR INSURERS ANNUAL REPORT 2009 Table of contents Compulsory Motor Third Party Liability Insurance: 4 The year 2009 in figures Car ownership and road accident statistics 6 The CMTPL insurance market 10 CMTPL insurance as part of the Russian insurance market 16 The work of the Russian Association of Motor 20 Insurers in 2009 Direct settlement of claims and simplified reporting of road 22 accidents The International Green Card System 28 Compensation payments 32 Total amount of compensation payments made 34 Amendments to legislation 34 Complaints 35 Legal issues 37 Legislation relating to Compulsory Motor Third 38 Party Insurance Improving the legal and regulatory framework for CMTPL 40 insurance Preparing amendments to the rules of professional conduct 41 Technical support for RAMI members 42 Insurance premium tariffs 43 Information technology 44 The RAMI Automated Information system (RAMI AIS) 46 Protecting personal data 46 Road safety 48 The use of mechanical means of control of socially important 50 transport vehicles in Russia Voluntary accreditation of technical examiners of vehicles 55 International relations and the exchange 56 of information International contacts, seminars and conferences 58 Appendices 62 Extract from the report of the auditors 66 Extract from the report of the internal audit commission 67 3 Compulsory Motor Third Party Liability Insurance: The year 2009 in figures Growth in the number of vehicles in Russia Car ownership and road accident statistics 50 40 The following factors need to be taken growth in vehicles on the road increased into account when describing the opera- from 1.4% to 7.4%. However, this increase 30 tion of the CMTPL insurance system: was not maintained in 2008 and 2009, • The total number of vehicles on the during which years the rate of growth was 20 road. 6.6% and 2.1% respectively. During 2009, • The types of vehicle. there was a numerical increase in the • The number of road accidents. number of vehicles on the road of 900,000 10 • The number of individuals injured. vehicles. One of the main causes of the • The proportion of road accidents, reduction in the rate of growth of vehicles that result in serious injury. on the road was a significant drop in new 0 • The proportion of road accidents with car sales. material damage. Figure 2 sets out the breakdown of • The causes of road accidents. vehicles on the roads of the Russian In the last few years, the number of Federation in 2009 by type of vehicle2. vehicles on the road has grown. Up to During 2009, the proportion of light 2008, road accident frequency also vehicles increased (from 77.7% to 78.65%) increased, but during 2008 and 2009 the Fig. 1 whilst the proportion of goods vehicles number of accidents that resulted in death reduced (from 13% to 12.65%) as did the or injuries fell and at the same time the share of passenger transport (from 2.2% to total number of people injured in road acci- 2.1%) and motor cycles (from 7.1% to dents also fell. 6.6%). The number of light vehicles on the Number of vehicles by vehicle type Table 1 and Figure 1 set out the basic road grew by 3.3% during 2009. The corre- (excluding trailers and semitrailers) information about the number of vehicles sponding figure for passenger transport on the roads of the Russian Federation was 0.2%, but the number of goods vehi- between 2004 and 20091. cles reduced by 0.5% and motor cycles reduced by 6.2%. Between 2004 and 2007, the rate of Table 1 Fig. 2 6 1,2 Data provided by the State Inspectorate for Road Safety. 7 A comparison of the number of vehicles and the number of Comparison between growth in accidents and motor vehicles CMTPL insurance policies issued 50 40 30 20 10 0 Fig. 4 A comparison of the growth in numbers of CMTPL policies issued and number of vehicles Number of people killed and injured in road accidents Fig. 5 total number of CMTPL policies issued fell. 203,600 (figure 4). Fig. 3 Before 2008, the number of accidents The total number of people killed or on Russian roads had been increasing and injured on the roads also reduced by 5.9% Before 2009, the growth in vehicle previous year. as a result, the number of those claiming to 283,100 (300,800 in 2008). In addition, numbers had been accompanied by an compensation through CMTPL insurance the number of people killed reduced by Figure 3 compares the growth in vehicle increase in the number of CMTPL policies also increased. In 2008 and 2009, the 12.9% and of those injured by 5.1%. numbers and the number of CMTPL poli- issued. During 2009, there were total number of road accidents in Russia cies issued. Figure 5 sets out the figures for killed was 218,300 and 203,600 respectively. 44,400,000 vehicles in the Russian and injured on the roads between 2004 Up to 2009, the growth rates in both Federation whilst the number of CMPTL In 2009, the number of accidents that and 20093. vehicles and CMTPL policies issued were policies issued was 35,200,000 — a caused injuries continued to reduce. The roughly equal. However, during 2009 the At the same time, the number of CMTPL reduction of 4.3% as compared with the total number of accidents in 2009 was 8 3 Data provided by the State Inspectorate for Road 9 Safety. A comparison in the rate of growth in the number of Number of accident victims receiving compensation and accidents and in the number of claims reported total claims payments Fig. 6 Fig. 8 CMTPL insurance premium and claims Average CMTPL insurance premium Fig. 7 Fig. 9 claims made continued to grow (figure 6). number of road accidents where there was collected; In 2009, both the amount of claims pay- The main reason for this is the fact that the only damage to property increased. • 2.07 million claims for compensation ments made and the number of insurance were made; claims made increased (Figure 8). Thus, there • 1.96 million claims were settled; were 2.07 million claims made in 2009, an The CMTPL insurance market • 48.5 billion Rubles in claims pay- increase of 4.6% over 2008. At the same ment were made. time, the number of policies issued fell by The annual figures for premiums and 4.3%. Between 1 June 2003 and 31 December was in excess of 211 billion rubles. claims payment are set out in Figure 7. 2009, more than 205 million CMTPL policies When CMTPL insurance came into force, In 2009: were issued, more than 9 million claimants For every 100 rubles in CMTPL insurance the average premium paid was 1,880 rubles have received compensation flowing a road • 35.2 million policies were issued; premium collected in 2009, 65.6 rubles was and it has since then increased to 2,440 accident and total claims payments made • 85.8 billion Rubles of premium was paid out in claims. rubles. If these figures are adjusted to take 10 11 Average CMTPL claim paid Leading regions of Russia in CMTPL claims payments 2009 0 Fig. 10 RAMI member insurance companies by size of equity capital Fig. 12 rubles (9.2% of premium) and 16% between Both the Rostov Region and Samara 500 million rubles and 1 billion rubles (7.7%). Region made claim payments which totaled In contrast, 80.5% of premium was collected 2.8% of the total — (1.385 billion rubles and by the 18% of companies that have capital 1.366 billion rubles respectively). above 1 billion rubles (Figure 11). Turning to the Federal Districts, there is no Figure 12 shows the regions of Russian doubt that the leading Federal District in Federation where most CMTPL claims are terms of both premiums collected and claims Fig. 11 paid by insurance companies. paid is the Central Federal District where 31,607 million rubles of premium was col- In 2009, the three regions with the most lected (36.7% of the total) and 14,702 million CMTPL claims payments were Moscow Ñity, rubles claims were paid (30.1% of the total). with 6,415 million rubles (13.1% of the total), The details are included in Figure 13 and 14, account of inflation in the same period, the by 1.8% over 2008 (Figure 10). St Petersburg, with payments of 3,769 million result is that in real terms, the average premi- the data being derived from RAMI form 2 for 140 insurance companies held licenses to rubles (7.7% of the total) and the Moscow um has fallen by 32% (Figure 9). 2009. carry on CMTPL insurance business at 31 Region with 2,967 rubles (6.1% of the total). In 2009, 17% of total premiums were col- It should be noted that the increase in December 2009. The average capital of In the following regions, total claim pay- lected in the Volga Federal District (14,596 average premium in 2009 was influenced CMTPL insurance companies was 610 million ments of between 1.5 and 1.8 billion rubles million rubles), 11.7% in the North Western by a small increase in CMTPL premium tar- rubles4. 24% of insurance companies carrying were made (3.1% to 3.7% of the total): the Federal District (10,106 million rubles), 11% iff rates in those regions of Russia where on CMTPL business had capital of less than Krasnodar Region (1,811 million rubles), the from the Siberian Federal District (9,432 mil- loss ratios were above 100.
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