The move toward full customization of MTPL tariffs marks a shift in how auto insurance pricing will be set. Izvestia reports insights from Evgeny Ufimtsev, the head of the All-Russian Union of Insurers (VUS). He explains that the new approach will determine only the ceiling price for an auto policy, while insurers will decide the tariff charged to individual customers within that framework. This change signals a shift from fixed rate structures to more dynamic pricing based on risk assessment and market conditions.
Ufimtsev noted that today the industry operates within a tariff corridor established by the Central Bank, and the same corridor continues to guide pricing decisions. This creates a bounded environment where insurers have room to maneuver, but within defined limits to maintain consumer protections and financial stability.
He added that by March, short-term compulsory automobile policies should be available with near-zero or highly competitive tariffs. The goal is to observe how this model performs in practice and to engage with the Central Bank to explore the possibility of offering free tariffs for all MTPL agreements in the future. This potential shift would emphasize affordability and access while keeping insurers’ risk management in view.
In 2024, discussions will also consider raising the policy limit for harm to life and health in the event of an accident. Presently, that cap stands at 500,000 rubles, and policymakers are weighing whether higher payouts might be appropriate to reflect evolving medical costs and consumer needs. These deliberations reflect a broader trend toward adjusting protection levels in line with real-world outcomes and inflationary pressures.
There is a note that the Central Bank does not plan to widen the tariff corridor in the MTPL system in the near term, though regional coefficient adjustments remain possible. If regional coefficients fall in a given area, vehicle owners could access cheaper coverage, while higher coefficients could lead to higher premiums where risk factors are more pronounced. This regional flexibility aims to better reflect local risk profiles without undermining overall system stability.
The Central Bank has shown support for piloting short-term MTPL policies, but its exact implementation remains to be seen. Following a 2023 amendment to MTPL legislation, it became possible to obtain an MTPL policy for a period as short as one day up to three months, offering flexibility for temporary use or transitional needs. Regulators emphasize that the operational details, including how claims handling and policy administration will work in these shorter timeframes, require careful monitoring and industry collaboration to ensure consumer protections are maintained.
In a related move, President Vladimir Putin signed legislation expanding the right for residents in four newly incorporated regions to operate a vehicle without an MTPL policy under certain conditions. This development reflects ongoing efforts to adapt the insurance landscape to regional realities while ensuring that drivers understand the legal and financial implications of not carrying a policy, especially in scenarios that involve third-party liability and public safety.
Questions have emerged among Russians about why some insurers appear to extend the time required to repair a vehicle under compulsory coverage. Stakeholders point to the interplay of service capacity, authorized repair networks, and claim settlement processes. The evolving regulatory environment seeks to streamline repairs and reduce downtime for drivers while maintaining rigorous standards for vehicle safety and customer protection. Stakeholders emphasize the importance of clear communication, efficient claim workflows, and transparent pricing as the market adapts to new tariff structures and shorter policy durations.