Although the number of MTPL Policies written in 2012 increased compared to 2011, the gross collected premium amount decreased, on account of Euro exchange rate growth. Positive business results were achieved thanks to the reduced number and amount of the claims settled and the reduced number and slightly increased amount of the claims reserved.
Unlike the life and other non-life lines (excluding the compulsory traffic), which reported loss in 2012, the compulsory traffic lines achieved positive financial results and/or profit.
Having in mind the total achieved business results, the combined premium system and minimum MTPL premium tariff have been sufficient to cover the claims for indemnity and other legal liabilities, and there is no reason to increase them.
Long-standing MTPL problems and achieved results indicate the need to reconsider how justifiable it is to apply the minimum premium tariff system and allow for the gradual transfer to the concept of market liberalization. Big premium amount discrepancies can neither be expected in the free market conditions, but the Insurers shall, based on the risk assessment and their business policy, be instructed to harmonize more, taking into account their own experience and the experience of other domestic Insurers, which might have positive influence on finding common solutions, pursuant to the Law and Code of Conduct on compulsory traffic insurance lines. The Insurance Companies should be made more responsible for taking the risk of their business operations in this line of business, as well. We should also bear in mind the fact that the MTPL market liberalization is a mandatory standard in the EU member states.

UDK: (047.3) 368.212.032.5:344.38:368.025.13:368.025.7(497.11) Cerović, dr B. Milan MTPL INSURANCE RESULTS IN 2012 Page: 5-24