KP: The decline of the OCTA guarantee fund is not reason enough to raise the prices of the policies – in Latvia – News

KP informed that the public account of the representative of Jura Stengrevica of the Latvian Motor Insurance Bureau (LTAB) concerning the reduction of the amount of the OCTA guarantee fund could not be a reason for the future increase in the price of the # 39; OCTA. In the fund, OCTA service providers were already known in advance, so the KP does not consider this to be a sufficient reason for customers to increase the prices of the policies. "19659002] The Competition Supervisor explained that LTAB is a provider of guarantee funds for the additional contributions necessary to the Guarantee Fund, which includes up-to-date information on the market situation of the OCTA. At the same time, the CP reports that, in the opinion of a representative of the LTAB, a significant part of the insurers would have already taken their prices into account, these additional costs borne by the Guarantee Fund are not correct.

In this case, one of the CEOs of LTAB must carefully consider any information or opinion that he publishes publicly, especially if it contains indications of possible changes in price policy on the market

"Notes on price forecasts or possible price increases. A participant may also serve as a signal for unjustified price increases for other market participants who had not planned to increase their prices or which had already been set at an existing price. may contain unjustified or even misleading information for the public ".] KP recovers The fact that pricing is the individual decision of each trader in a context of fair competition taking into account the internal pricing mechanism of the firm and the fluctuations in the economic value of goods.

It was reported that despite the fact that insurance companies the OCTA guarantee fund resumed its payments in October and fell to its historically low threshold since April 2008 , while it exceeded the statutory 20 million euros and that the contributions were no longer needed, the LETA agency informed the Latvian office of the bades. Motor Urges (LTAB)

According to calculations of the LTAB in August, its amount will be less than 17 million euros

Contributions to the Guarantee Fund are provided for by the legislation if they fall into below 20 million euros. On the other hand, if the fund falls below 17 million euros, insurers must pay double contributions.

According to LTAB, given the weak economic growth of the last decade, OCTA's average earnings increase for several consecutive years. The guarantee fund fell below the 20 million mark in 2016 and, despite insurers' contributions, its size continued to decline.