The Ministry of Finance and the Central Bank are preparing the continuation of the CMTPL reform – increasing the limit of payments for the life and health of victims on the roads by four times, up to 2 million rubles, abandoning the power factors and the region and from accounting for car wear when paying for damage in cash. Only the latest innovation will require an increase in tariffs by at least 30% – half of the cars in the country are more than ten years old, which now gives companies the right to reduce payments taking into account depreciation by 30-50%. The upcoming increase in tariffs is also recognized by the Bank of Russia – it plans to start discussing the reform in the Duma in the fall.
As Roman Tochilin, Deputy Head of the Financial Policy Department of the Ministry of Finance, said at the general meeting of the Russian Union of Auto Insurers (RSA), “in the coming year, the market will expect changes … inherent in this system, such as accounting for depreciation (in the payment of OSAGO.— “B”) “. We are talking about the continuation of the CMTPL reform, which the Ministry of Finance has already begun discussing with the market. Its essence is in three changes: an increase to 2 million rubles. limit of payments for damage to life and health, rejection of power factors and territory – and from accounting for depreciation in cash payment of OSAGO.
Now the car owner can receive payment from the insurer in money or repairs – according to the Central Bank, it accounts for only 11% of payments, according to insurers – up to 20%. The day before the PCA meeting, at the annual general meeting of the All-Russian Union of Insurers (ARIA), Central Bank Deputy Chairman Viktor Chistyukhin said that the regulator “is closer to supporting avoiding wear and tear in payments, but this will require … tariff adjustments.”
“As the actuaries calculate, it will change in that direction, but something suggests that, probably, a little more upward, ”he said.
“In the course of the CMTPL reform on the individualization of the tariff, experts raised a number of issues on which the discussion was not completed. Their circle includes accounting for depreciation when making payments in cash and increasing the limit for payments for life and health to 2 million rubles. We plan to start discussing these issues in the State Duma this fall, ”the Central Bank told Kommersant.
As they say in the market, the old car fleet (about 50% of vehicles are over ten years old) now allows to take into account wear and tear of 30-50% when paying in cash – this is how much the payment to the car owner decreases. As the executive director of RSA Yevgeny Ufimtsev said at the general meeting of the union, “we are ripe and want to make better products for compulsory motor third party liability insurance – to increase the limits, move away from wear and tear, yes, in this case it will require a little more payment from people”. According to Dmitry Rakovshchik, the head of RESO-Garantia, “all innovations will fit into an increase of 30% in the base average premium”. “Increasing the limit for causing harm to life and health four times, according to preliminary estimates, will lead to an increase in the cost of the policy within 1 thousand rubles, less than 100 rubles. per month. And the refusal to take into account wear and tear can increase the annual price of the policy by the cost of a half-tank of gasoline, ”Yevgeny Ufimtsev explained to Kommersant.
The size of the average CMTPL premium at the end of 2020 amounted to 5,497 rubles, in the first quarter it increased by 1.4%.
As they say in the union, thanks to the individualization of tariffs, the average price of OSAGO has remained unchanged for more than two years – since 2019. At the same time, in 2019, it decreased by 5% compared to 2018 (to 5500 rubles). At the same time, the average payment in 2020 alone increased by 23%, to 83.6 thousand rubles. “Despite the coronavirus year 2020, in general, over three years, the level of well-being of Russian citizens has increased, and the average cost of cars that drive on our roads has increased markedly, and along with it, the cost of spare parts has grown. This and positive innovations for motorists in the OSAGO product itself will require some tariff adjustments, ”warns Yevgeny Ufimtsev. Analysts are still optimistic. “I don’t think that tariffs can grow significantly, competition among insurers remains,” says Alexei Bredikhin, head of the ACRA financial institutions ratings group.