Auto Liability Loss Level Doubles
Tuesday, June 8th, 2004 Auto LiabilityThe Finance Ministry has said the loss level of mandatory automobile liability insurance nearly doubled in the first quarter, head of the Federal Insurance Regulatory Service Ilya Lomakin-Rumyantsev told Interfax. Payouts made up 21% of premiums in the period, up from 12% in the fourth quarter of last year and 4% in the third quarter, he said. Payouts could reach 90% of premiums by the end of this year and the loss level on premiums could hit 100%, he said. Ingosstrakh Deputy Director for corporate development Edgar Pleskanovsky said the actuaries of all insurance companies that provide mandatory automobile liability insurance are warning that the loss level on this kind of insurance is growing fast and nobody can way when it will peak and at what level.
