How much insurers pay in claims for each 100 RON collected from auto liability insurance sales

Civil auto liability insurance (RCA) policies represent themost important business line for insurers, but besides revenues,these also bring significant expenses for many companies. The tenbiggest companies selling auto liability insurance policies lastyear settled claims worth between 21 and 90 RON for each 100 RONcollected in from insured persons, according to a ranking drawn upby ZF on the basis of data reported by companies. Against two yearsago, expenses per each RON collected have risen in the case of allcompanies, considering the average claim for auto liabilityinsurance has gone beyond 1,000 euros. In the past four years, theaverage claim on the auto liability segment has doubled. On theother hand, auto liability policy prices have also registeredsteady growth in the past few years, with only the companies eyeinga rapid market share increase embracing a more aggressive ratepolicy. In the case of all surveyed companies, the ratio betweensettled claims and gross premiums is sub-unitary, but insurersstill say they generate losses from auto liability insurance sales.This happens as expenses related to policy acquisition andmanagement expenditures are added to claims settled.