CMTPLI financial indicators published
The Bank of Russia will release data on the loss ratio in compulsory motor third-party liability insurance (CMTPLI) and its components on a quarterly basis. It is the ratio of insurance premiums to insurance payments, including expenses related to the latter. When the ratio exceeds 100%, CMTPLI business becomes inherently unprofitable for insurers.
According to the regulator’s data, the loss ratio for 2026 Q1 came in at 98%.
In addition to the payouts made, the ratio calculation takes into account insurance reserves formed by companies for future payments as well as expenses associated with handling loss compensation claims. These expenses include additional insurance payments under letters before action, court awards and legal fees, including those related to fraudulent claims, as well as fees for vehicle inspections and independent expert examinations.
Moreover, for the CMTPLI system to function, insurers must make contributions, including to compensation funds. These funds are used for payouts to victims in some cases, e.g. when an insurer’s licence has been revoked or the person responsible for the road accident is unknown. That said, certain expenses incurred by insurers are not included in the ratio calculation, e.g. commissions paid to intermediaries (agents, car dealers, etc.) helping solicit new customers.
The publication of these financial indicators is aimed at enhancing the transparency of CMTPLI, showing market participants and consumers whether CMTPLI business is profitable or loss-making.