The Finance Ministry has defined the parameters of the second stage of liberalization of tariffs on OSAGO

2 October 2018

The Finance Ministry has appointed insurance extended corridors of tariffs will remove the coefficients of the power and territories

Rates for car owners can be more fair on the part of insurers, which expanded the tariff corridor, as from 1 September 2019 it will be extended to 30% both up and down from the base rate, as from 1 September 2020 – up to 40%. Starting 1 September 2019 is cancelled, the power factor of the motor, and from September 1, 2020 and even territorial coefficient, i.e. the proposals of the MPs will be implemented in full.

As follows from the explanatory note to the draft "the maximum deviation of 30% and 40% are evaluation of the impact of the abolition of each of these coefficients of insurance tariffs and are designed to prevent compensation of the underestimation of insurance risk from one category of insurers by insurance premiums paid by other category of policyholders". Simply "good", i.e. disciplined and responsible drivers will no longer pay for "thugs" and other drivers "with lower social responsibility", which being in the absolute minority (only 5% of all drivers) commit over 50% of all accidents.
The amendments require that insurers will be able to use the factor "traffic violations" and "the ratio of the insurer". Be the first to apply to malicious violators of traffic rules, in particular to those who crosses two continuous lines of road markings exceeding speed more than 60 km/h running a red light, driving drunk, etc. the Second factor will allow the insurer to set a custom discount for a specific driver.
However, from 1 September 2019 calculating the cost of CTP needs to disappear power factor. Today it ranges from 0.6 (for transport with an engine power of 50 HP) to 1.6 (over 150 HP). The main function of this factor was social: it was adopted in order to reduce the cost of insurance policies for low-income car owners. However, numerous studies did not reveal the direct dependence of the risk of getting into an accident from the power of the car. But conclusively established that the main source of accidents – the driver and to what extent it is accurate on the road, comply with traffic laws and show respect to other road users. With the transition to a fair rate personalized the rejection of this factor will be possible. After 2 years, from 1 January 2020, should be repealed and the territorial factor. Now for the different territories it ranges from 0.6 to 2.
The expert auto lawyer Sergey Smirnov has explained: "While the insurance company may not offer individual car owner rate in those regions where more accident or fraud is booming, and hence the higher the risk of occurrence of the insured event, all policyholders will pay a higher average price. And those who drive carefully, and those who constantly gets into an accident. And when the tariff will be individual factors will naturally fall away."

The Bank of Russia emphasizes that it is important to cancel the coefficients gradually, as sudden failure, for example, from the territorial factor will affect the number of regions with low and inhabitants of small towns. To consider their cancellation is only in relation to a full customization of the tariff, saying the Russian Union of insurers.
Cancellation coefficients will precede tariff reform, which is expected to take place this fall. A Central Bank offers extension of tariff corridor by 20% up and down change in the calculation of the MSC and increasing the number of segments of the age and experience of drivers with existing 4 to 50.

The President of RSA Igor Yurgens claims: "We actively support the reform of the CTP and the steps of the Central Bank and Finance Ministry in this direction. In the current situation, the pricing policy does not take into account the individual risks of each driver. Happens subsidizing some of the other segments and it precludes the establishment of a fair price"..