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

Civil auto liability insurance (RCA) policies represent the
most important business line for insurers, but besides revenues,
these also bring significant expenses for many companies. The ten
biggest companies selling auto liability insurance policies last
year settled claims worth between 21 and 90 RON for each 100 RON
collected in from insured persons, according to a ranking drawn up
by ZF on the basis of data reported by companies. Against two years
ago, expenses per each RON collected have risen in the case of all
companies, considering the average claim for auto liability
insurance has gone beyond 1,000 euros. In the past four years, the
average claim on the auto liability segment has doubled. On the
other hand, auto liability policy prices have also registered
steady growth in the past few years, with only the companies eyeing
a rapid market share increase embracing a more aggressive rate
policy. In the case of all surveyed companies, the ratio between
settled claims and gross premiums is sub-unitary, but insurers
still say they generate losses from auto liability insurance sales.
This happens as expenses related to policy acquisition and
management expenditures are added to claims settled.