Template-Type: ReDIF-Article 1.0

Author-Name: Gabriella Meresz
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: mereszg@mnb.hu

Author-Name: Norbert Holczinger
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: holczingern@mnb.hu

Author-Name: Koppany Nagy
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: nagykoppany@mnb.hu

Title: Methodological Background of the New Motor Third-Party Liability Insurance Index of the Magyar Nemzeti Bank

Abstract: In order to provide an accurate description of developments in the Hungarian motor
third-party liability insurance (MTPL) market, as well as to inform the public and
stimulate competition, the Magyar Nemzeti Bank (the Central Bank of Hungary,
MNB) has elaborated an index to indicate the MTPL premium level. The method
offers a comprehensive picture of changes in average premiums, as it uses data
from the central itemised MTPL database to cover not only the population switching
insurers but also remaining contracts and new entrants. It reduces bias due to
seasonal effects and trends by eliminating changes in the stock composition. It
can also illustrate how much the premium has changed in relation to the change
in the magnitude of claims, taking into account the estimated average change in
claims. In our study, we present the statistical and methodological considerations
used in the calculation of the MTPL index and describe the relevant characteristics
of Hungarian MTPLs.

Classification-JEL: C18, C51, G14, G22
Keywords: insurance, non-life insurance, motor third-party liability insurance, MTPL index, MTPL premium level, use of claims
Pages: 59-79
Volume: 20
Issue: 3
Year: 2021
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-20-3-st3-meresz-holczinger-nagy.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:20:y:2021:i:3:p:59-79