Compared with last year's nine month period, the increase of losses was 5%. However, compared with results of the first half-year, losses increased by more than six times, as the latest data of the Latvian Transport Insurers Bureau states.
"Results of this year's nine months on OCTA market unfortunately did not come as a surprise. The market continues to create losses for insurers for nine years now. The reason for this is the price for insurance policies, even though the prices experienced a reduction four years ago. Although there is steep competition on the insurance market, results show that sustaining this level is economically inefficient. Therefore, most likely, there will be a rapid price increase on OCTA," - BALTA Board member Kristians Pudans predicts.
Despite the fact that, according to the data from the Road Traffic Safety Directorate, the total number of traffic accidents has reduced by 8% in the last nine months of 2012, the paid insurance claims have increased by 11%. This was mostly dues to the fact that the rate of accidents declined, while their severity and, thus, damage caused by them increased.
Read the full story on www.bnn-news.com.
LATVIA: OCTA insurance policy to become more expensive
18787 views
