Expert: individualization of tariffs despite the crisis «holds» the cost of OSAGO in the Russian Federation
The economic situation in Russia is still tense — inflation, according to the Central Bank of the Russian Federation, may reach 22% in 2022 year. Many goods, including spare parts from most foreign manufacturers, have become unavailable or have increased in price by 2-3 times. But despite all the negative factors, insurers manage to maintain a stable OSAGO price, as evidenced by the data of the Russian Union of Motor Insurers (RSA) on the average OSAGO premium for the past January-March.
This result was made possible largely due to the individualization of the tariffs of the “car citizen”, which began to work due to the introduction of appropriate amendments to the law on OSAGO. Insurers began to apply individual tariff factors when calculating the cost of OSAGO for each specific driver from September 2020 year. The system shows its high efficiency to this day: insurers reduce rates for good motorists and increase the cost of insurance for reckless drivers with a high level of risk. It is the accident rate that is one of the main indicators that insurers pay attention to when individually calculating the price of “autocitizen” policies. The more carefully the car owner behaves on the roads, the cheaper OSAGO becomes for him. Statistics show that the majority of accident-free drivers in our country are 95% according to the RSA.
The latest data on the size of the average insurance premium for January-March 2022 from the PCA show the following statistics: in most regions, the cost of policies remained at the same level or decreased. For example, in St. Petersburg, the cost of policies decreased by 0.21% ( from 7 245 rub to 7 146 rub.), in the Moscow and Leningrad regions the price remained practically at the same level: from 7 245 rub. up to 7 95 rub. (on 0,035%) and from 5 934 rub. up to 5 934 rub. (by 0,064%) respectively.
A decrease in the cost of OSAGO policies was also seen by car owners in many large regions. So, for residents of Primorye, the average insurance premium decreased by 3. % (from 5 934 rubles to 5 809 rubles .). In the Trans-Baikal Territory, the price of a “car citizen” fell by 5. 035% — from 2 912 rub. up to 2 245 rub. For drivers of the Amur Region, the cost of OSAGO policies has decreased by 4, % (from 6 146 rubles to 5 895 rub.). In Dagestan, the average price of compulsory car insurance policies in March amounted to 4 881 rubles, which is 3.6% lower than in January (5 064 rub.). in Moscow, the average price of a “car citizen” increased, but only by 0.2% — from 8 035 rub. in January up to 8 035 rub. in March. The average premium increased significantly only in the Nenets Autonomous Okrug — by 08,8% (from 4432 to 5042 rubles).
In the future, the course towards further individualization of tariffs will help maintain such results and allow insurers to continue to encourage accident-free drivers, says Evgeny Ufimtsev, Executive Director of the PCA.
The legislators, together with the Central Bank of the Russian Federation and the RAMI, plan to adhere to the set course of individualization and carry out systematic joint work to improve the tariff system. This is extremely important in the current situation, because the measures taken earlier today really show their high efficiency and allow the OSAGO segment to continue to fulfill its social function, while not forcing accident-free car owners to pay for losses from reckless drivers and taxi drivers. When in March the consumer price index rose by about 2% according to Rosstat, the average cost of OSAGO, on the contrary, showed a decrease to 21% compared to January for car owners from 11 regions. In general, the average premium in the Russian Federation for March amounted to 5 568 rubles, which is only by 245 rubles higher than at the beginning of the year. Considering the difficult economic situation and the trend of a sharp increase in the cost of spare parts, this is a fairly good indicator , — emphasizes Evgeny Ufimtsev.
Source: Press Service of the Information Project “OSAGO: Public Expertise”