OCTA is a compulsory civil liability insurance of owners of land transport vehicles. It is required for all motorized vehicles that are involved in road traffic.
In society, there is a rush about raising the cost of OCTA. The reviewed insurance companies do not conceal the fact of a price increase for services. According to the insurers, the prices were adjusted by an average of 32%, but some tariffs increased immediately by 50% (source: www.delfi.lv).
We will analyze the actual situation, namely the amount of premiums collected from OCTA by the insurers and payments for OCTA for the period from 01/01/2018 to 30/0/2018, and give the reader an opportunity to make final conclusions.
6 months of the year 2018 show that the total amount of premiums collected by the companies is 43 501 343 euros, but the real insurance payments – 24 190 842 euros. On average, the price for OCTA insurance is 1.8 times higher for the consumer.
Source: official balance sheets of insurance companies (publicly available information on the websites of the companies).
For example, if you insured in the company Compensa Vienna Insurance Group ADB Latvia branch for the amount of 133,28 euros (the price of your OCTA policy), then the real price for you should have been 36,42 euros.
In the table, you will find the rates that will help the residents to determine the real price of their current OCTA policy, dividing the cost of their OCTA policy by the rate from the table (excluding the administrative and overhead costs of the insurance companies).
If the government was involved in this type of insurance, then prices for OCTA would decrease 1.8 times for all the residents of Latvia. Perhaps now is the time for the state and the new government to take over this function in order to improve the welfare of the people living in Latvia?
