For a decade and a half, the Commission for Automobile Responsibility under the Ministry of Finance has remained silent on the needed adjustment of auto insurance rates. The Insurance Group at the Macedonian Chamber of Commerce urges greater comprehension from governmental bodies regarding the intricacies of the insurance sector. They advocate for thorough consideration of all submitted analyses on auto insurance pricing, aiming for a resolution that aligns with genuine market rates, ensuring efficient coverage of damages.

Repeatedly, insurance companies, facilitated by the National Insurance Bureau, have presented their evaluations to the relevant authorities: the Ministry of Finance, the Commission for Automobile Responsibility, and the Insurance Supervision Agency. According to Article 46 of the Law on Compulsory Traffic Insurance, the Automobile Liability Commission is mandated to conduct an annual review of the prevailing situation and propose to the government the minimum and maximum technical premium rates for automobile liability insurance.

However, despite this legal obligation, the Commission has failed to convene annually. Consequently, the minimum and maximum technical premium rates for automobile liability insurance have remained stagnant for fifteen years, unchanged since 2008, when they were slashed by 30%. The last adjustment to these rates occurred on September 9, 2008, by the Government of the Republic of Macedonia.

This prolonged stagnancy implies that automobile liability insurance prices have remained static for a decade and a half, amidst a general 61.5% surge in prices. Compounded by factors such as a significant portion of policyholders enjoying a 50% maximum bonus/premium reduction, new taxes levied on insurance companies (2% by the Health Insurance Fund and 0.8% by the regulator), escalating wages, and rising living costs, the viability and rationale of the auto insurance sector are thrown into doubt.

The National Insurance Bureau corroborates the unsustainability of existing prices, citing a loss of 176 million denars in 2023 within the automobile liability insurance segment. They express hope for a receptive approach, grounded in factual assessments.

Recognizing the pivotal role of insurance in economic and social development, as well as its function in safeguarding citizens, state assets, and the business community, it is imperative for the sector to maintain sustainability, stability, and readiness to address policyholders’ needs.

Furthermore, it is crucial for the public to understand that Macedonia boasts the lowest auto insurance rates in the region. However, against the backdrop of skyrocketing car and spare parts prices, escalating wages, and a steep rise in the cost of living, auto insurance rates have become untenable.

Insurance companies appeal to the Commission and the Government, particularly the Ministry of Finance, as reputable institutions, to conduct a thorough analysis and recommend realistic adjustments. Persisting with unrealistic rates for fifteen years serves no one—neither citizens, businesses, nor the state.