As a reminder, starting from July 1, the property insurance coverage in CTP increased from UAH 130 thousand to UAH 160 thousand, and life and health insurance from UAH 260 thousand to UAH 320 thousand. We believe that the decision made by the National Bank of Ukraine is quite reasonable. According to INGO's statistics, maximum payments have been made more and more often recently. If, for example, in 2020, maximum payments accounted for slightly more than 1% of the total number of payments, then in the 2nd quarter of 2022 their share increased to 3.6%. At the same time, the maximum payment does not mean that the victims receive the full amount of their losses.
Yes, the new limits are still far from the European standards that everyone is striving for. Yes, they are still not enough to compensate for the rising cost of spare parts and repairs observed in the current environment. However, according to INGO experts, within the next quarter, since the new conditions have been introduced, payments under the CTPCI will increase by 15%, and over the next six months by another 30%.
As of July 1, the limit of compensation for losses under the European Protocol has also increased. Now, a simplified procedure can be used to register losses of UAH 80 thousand (previously UAH 50 thousand).
This will not lead to an immediate increase in the price of all policies. Currently, the company has a safety margin in most segments of the tariff grid, which allows it to keep the price at the current level. However, there are segments for which the coefficients were not enough as of 01.01.2022, so the increase in the cost of policies will be noticeable there. In any case, the decision on the cost will be made based on the analysis of loss ratio.