New CMTPLI tariffs become effective on 13 September
The range of the basic tariff in compulsory motor third party liability insurance (CMTPLI) will be expanded by 26% both upwards and downwards for most categories of car owners so that insurers could take into account drivers’ individual risks amid a rise in spare parts prices. For individuals’ cars, insurers will set the basic rate of the CMTPLI tariff for each driver in the range of 1,646–7,535 rubles. For public transport, the tariff range will be expanded by 17.8% both upwards and downwards. Additionally, the calculation of the regional coefficients has been updated based on recent data.
The relevant Bank of Russia ordinance has been registered by the Ministry of Justice. The need to adjust the basic tariffs is confirmed by actuarial calculations. Owing to the decrease in the lower bound of the tariff range, insurers will be able to offer more beneficial terms to lower-risk drivers. The growth of prices for spare parts will to a greater extent affect policy prices for high-risk insured persons. The Bank of Russia expects that this measure will help limit the rise in CMTPLI prices as insurers will be able to better customise the tariffs. According to recent data, pricing trends already started to steady in August: despite an increase in payments, the average premium edged down for the first time since the beginning of the year.
Previously, the Bank of Russia expanded the CMTPLI tariff range several times to improve the customisation of prices so that each driver could pay for an insurance policy depending on the parameters of individual risk. Specifically, in September 2020, the tariff corridor was expanded by 10% both upwards and downwards. As a result, the average premium in CMTPLI rose by 1.85% in 2021, as compared to 2020.