In countries where MTPL is tariffed, there have been calls from market participants and insurance associations for the government to either increase tariffs to a profitable level or for a move toward premium rate liberalisation. However, governments historically have been reluctant to increase tariffs given the public’s perception of motor insurance as a form of indirect taxation.
The effect of MTPL products on underwriting performance is not only restricted to jurisdictions with motor tariffs.
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Senior Financial Analyst
Director, Public Relations