Bank of Russia to change OSAGO tariffs due to sharp rise in component prices
The corridor of the basic tariff in OSAGO (compulsory motor third party liability insurance) for most categories of car owners is proposed to be expanded by 26% both upwards and downwards. Thus, insurers will be able to more accurately take into account car owners’ risks now that component prices are rising.
Specifically, for private cars, the basic tariff in OSAGO will be set by insurers individually for each driver within the range of
The public discussion of the draft ordinance on the new tariffs will last until 28 June.
The need to adjust the basic tariffs is proved by actuarial calculations that take into account current data on component prices. According to the updated car price lists of the Russian Association of Motor Insurers, the parts most likely to be broken in accidents have risen in price by 28.7% on average. These lists are used to calculate the insurance premium in OSAGO.
Amid the sharp rise in prices for components, the new tariffs will allow insurers to keep prices down for careful drivers by increasing the cost of insurance for high-risk drivers.
Previously, the Bank of Russia repeatedly expanded the tariff corridor for OSAGO to better customise the tariff to let each driver pay for insurance considering the features indicative of his/her level of risk. In September 2020, the tariff corridor expanded by 10% both ways. As a result, the average premium in OSAGO in 2021 increased by 1.85% against 2020.