Insurance analysis - Insights on the number of accidents and the impact of MTPL insurance

Despite efforts to improve road safety, Romania seems to remain the "Land of the accident per minute", according to recent data published by Union of Insurance and Reinsurance Companies. Our country has the highest rate of road accidents, outperforming most European countries in this respect, with alarming figures and significant financial consequences.

Figures reveal the reality

The average accident frequency for the entire Romanian car fleet is about 6.6%, in contrast to Hungary or the Czech Republic at 2.8% and Slovenia at 2.6%. This recent data reveals a painful reality - we are "road accident champions".

Scary accident frequency in the transport segment

Focusing strictly on the transport segment, the accident frequency is 3 times higher than average, with 19% of all transport vehicles with a maximum authorised mass of more than 16 tonnes. These accidents, in general, are significantly more serious than those caused by other categories of vehicles.

Record claims and high costs

In addition to the increased frequency, the average claim paid under MTPL (Motor Third Party Liability)  policies for these types of vehicles is significantly higher than the overall average. On average, insurers pay out more than €2,240 per accident, up to 17% more than in Hungary.

Impact on the MTPL market

The number of accidents and the average MTPL claim influence the evolution of MTPL premiums, with a significant impact on insurance companies. Even though some technical indicators seem to be improving, MTPL insurance has been a constant source of losses for companies, contributing to the bankruptcy of some insurers in recent years.

Freezing rates and rising costs

RTA rates are frozen from April 2022, but claims costs continue to rise. The average claim paid in the third quarter of 2023 increased by around 12% and the fees and contributions paid by insurers have increased significantly in recent years.

Call for dialogue and balanced solutions

In this context, a technical and balanced dialogue with the authorities is essential in order to identify the best solutions that do not further affect the remaining MTPL insurers in the market. In a market economy, transparency and collaboration are key to finding sustainable solutions in this critical area for financial security and stability.